• ●1944

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• ●1954

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• ●1958

• ●1969

• ●1972

• ●1973

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• ●1981

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• ●2021

• ●2022

(in million euros)

(by division)

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(in million euros)

(% of Net Sales)

(in million euros)

(by division in  million euros)

(% of Net Sales)

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(as % of total consumption)

(Number of accidents leading to loss of work time – per million hours worked – BIC workforce)

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:

Full Year 2023 Net Sales are expected to grow between +5% and +7% at constant currencies driven by price, mix and volumes. We expect to improve 2023 adjusted EBIT and adjusted EBIT margin, with a growing Gross Profit margin, partially offset by continued investments in our Operations and Brand Support, aimed at driving our Horizon ambition of delivering long-term profitable growth.

Free Cash Flow is expected to be above 200 million euros in 2023, for the fifth year in a row.

Our 2023 outlook is based on the following market assumptions(3):

Market trends (in value)

• ●Europe: 
  • ●Flat to low-single digit decrease in Stationery 
  • ●Low to mid-single-digit decrease in Lighters 
  • ●Low to mid-single-digit decrease in Shavers
• ●US:
  • ●Low to mid-single-digit decrease in Stationery market
  • ●Low to mid-single-digit decrease for total pocket Lighter market
  • ●Low to mid-single-digit decrease in the total one-piece Shaver market

• ●Latin America:
  • ●Low to mid-single-digit increase in Stationery 
  • ●Low to mid-single-digit decrease in Lighters 
  • ●Flat to low-single-digit increase in Shavers
• ●India: Mid to high-single-digit increase in Stationery

EBIT drivers

• ●Gross Profit:
  • ●Increase in volumes, prices and mix
  • ●Higher Raw Materials and Sea and Air Freight costs
  • ●Favorable FX impact
  • ●Manufacturing efficiencies

Adjusted EBIT:

• ●Gross Profit expansion
• ●Increase in Brand Support to support Net Sales growth
• ●Increase in R&D and OPEX to support Horizon’s long-term growth and innovation

Free Cash Flow before Acquisitions and Disposals drivers

• ●Approximately 110 to 120 million euros in CAPEX

Currency: 2023 USD-EUR average hedging rate: 1.08

Embedded in its Horizon strategy, BIC’s ambition is to transform into a fast-moving consumer-centric company, in both existing and fast-growing adjacent markets to accelerate growth and sustain profitability over the long term. By doing so, the Group has adopted an integrated set of strategic initiatives in line with its vision and mission, including:

• ●create high-quality, safe, affordable, innovative products trusted by everyone;
• ●invest in operations, people, innovation and new products to sustain growth;
• ●enhance BIC’s existing portfolio of highly recognized consumer products, where different brands address diverse types of consumer groups while leveraging the BIC Brand heritage;
• ●target selected acquisitions to strengthen existing activities and develop higher growth adjacencies;
• ●deliver long-term sustainable value for all stakeholders: consumers, employees, local communities, customers, and shareholders.

We foresee the following major challenges in 2023:

• ●ongoing economic uncertainty due to the global geopolitical environment;
• ●foreign currency volatility;
• ●uncertainty around input costs.

While many of these issues are beyond our control, BIC is relentlessly putting in place actions to minimize the related risks across our operations.

We, therefore, believe that our strongest growth potential remains the strength of our Brands, the efficiency of our global supply chain and procurement, our commercial excellence including Revenue Growth Management, and our drive towards sustainable innovation. All of these are led by the talents of our multinational team members in 45 countries.

The Company has no knowledge of any governmental procedures, legal or arbitration proceedings, which are pending or threatened, that may have, or have had over the last 12 months, material effects on the financial position or profitability of the Company and/or the Group.

Sales growth, market share gains, earnings before interests and taxes (EBIT), free cash flow generation and a strong balance sheet are the key indicators of the Group’s performance.

February 14 and March 17, 2023: Evolution of the composition of the Board of Directors of SOCIETE BIC  

The Board of Directors held a meeting on February 14, 2023, where the directors decided to submit to the Shareholder's Meeting the appointment of Véronique Laury to succeed Marie-Pauline Chandon-Moët, whose mandate will expire and did not wish to seek reelection. Véronique Laury will be representing the Bich Family. The Board also acknowledged Elizabeth Bastoni’s decision to step down from her position as Independent Director, Chair of the Compensation Committee and of the Nominations, Governance and CSR Committee, effective from the next General Shareholders' Meeting, for personal reasons. 

The Board of Directors, on March 17, 2023, upon the recommendation of the Nominations, Governance and CSR Committee, decided to submit to the Shareholder's Meeting the appointment of Carole Callebaut Piwnica, as Independent Director, to replace Elizabeth Bastoni.

These two nominations will be proposed to the General Meeting to be held on May 16, 2023.

There has been no significant change in the financial position of the Company and its subsidiaries as a whole since December 31, 2022.

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.

Since its creation, one of BIC’s core ambitions has been to reimagine everyday essentials through new products and ground-breaking ideas, making research and innovation part and parcel of the Group’s DNA. BIC’s R&D organization ensures product quality and reliability while developing and delivering winning solutions for all consumers that build loyalty, relevance, and satisfaction. BIC is focused on enhancing consumer insight capabilities and increasing the pace of innovative new product launches internally or through partnerships to address consumer needs and desires, or anticipate them.

With the launch of the Horizon plan in November 2020, BIC took another step towards accelerating sustainable and consumer‐driven innovation. R&D teams are relentlessly working on how to develop products desired by consumers and examples of their research include:

• ●technologies to allow sustainable manufacturing process, replacing solvents and reducing overall CO2 footprint of the plants;
• ●strong focus on health and safety of products by inspection and evaluation of materials which must comply with the strictest regulations;
• ●investigation and development of solutions for increasing durability and extending coloring products’ life in Stationery;
• ●development of innovative features in shaver products, aimed at excelling shaving performance;
• ●development of sustainable solutions by designing refillable products with the minimum amount of material.

BIC is also expanding its open innovation ecosystem with the following recent initiatives:

• ●creation of an in-house Data-Driven Innovation (DDI) lab, aimed at identifying early-stage technologies and integrating them into the Group’s innovation pipeline;
• ●partnership with Plug&Play, one of the largest startup incubators globally, allowing the Group to access a wide diversity of startups and talent;
• ●creation of the Partnerships and new Business division, aimed at focusing on new business models and partnerships that will foster long-term growth opportunities and support innovation.

In 2022, over 230 team members were involved in research, development, and innovation. BIC invested 1.1% of sales in R&D. 9% of BIC’s Net Sales derived from innovations launched in the previous three years, compared to 8.1% in 2021. In 2022, 100 patents were filed and 311 were granted in total.

In Human Expression, BIC continuously innovates to bring state-of-the-art writing technology to its consumers and launches an average of 20 new products each year. Some of the most recent product innovations include:

• ●erasable ink with the BIC® Gelocity Illusion;
• ●a tattoo body marker with the BIC® Bodymark®;
• ●writing felt-pen medium point with the BIC® Intensity Medium;
• ●new Intensity coloring.

BIC’s increased focus on sustainability has also led to the launch in the past years of several innovative products with environmental benefits, creating a step forward to reducing our carbon footprint:

• ●BIC® Cristal® Re’New™, our first rechargeable metallic Cristal Ball Pen, offering a metal body and a recycled plastic cap;
• ●BIC® ReVolution, a full range eco-friendly Stationery line, made of at least 50% recycled plastic.

In Flame for Life, the category owns unique manufacturing processes and R&D, with a strong and ongoing focus on maintaining safety and quality. New product designs and process innovation in gas lighters are strictly controlled. A lighter not properly designed or manufactured can be potentially dangerous. Every BIC® lighter remains a safe and reliable product throughout its entire life cycle.

Following the successful launch of the BIC® EZ Reach in 2020, BIC launched in 2022 the BIC® Maxi Ecolutions lighter on the US and European markets, a new version of the  BIC Maxi® lighter using alternative materials: bio-attributed plastic and 55% recycled metals.

In Blade Excellence, 10 to 15 new products are developed annually. These range from line extensions to new product launches. Some of the most recent innovations include:

• ●for Men: BIC® Flex 5 and BIC® Flex 5 Hybrid. In 2022, BIC® Hybrid Flex line was elected “Product of the Year 2022” by the French and Belgium consumers. The vote was based on perceived innovation, attractiveness, purchase intention and consumer experience. This is a refillable shaver with 100% recyclable packaging made from 80% recycled paper. 
• ●for Women: BIC® Soleil Click 5 and BIC® Soleil Sensitive Advanced. In 2022, BIC launched the new line BIC® Soleil Escape in the US. These razors have 4 flexible blades that individually adjust to the contours of the skin and have long-lasting lavender and eucalyptus scented handles. In addition, BIC launched a new version of BIC® Click Soleil 5 with a new handle containing more than 40% recycled material (recycled TPE- thermoplastic elastomer) co-developed with Avient, a raw material supplier;
• ●for Men and Women: BIC launched the BIC® bamboo shaver, a five-blade hybrid shaver with a movable head and handle made from responsibly sourced bamboo. In Q4 2022, BIC launched online in the US, BIC® EasyRinse, a new razor in both disposable and hybrid versions, featuring a first-of-its-kind blade design and patented anti-clog technology. 

92% of Group Net Sales are generated in BIC-owned factories.

BIC owns and operates 24 manufacturing locations around the world:

• ●14 locations are dedicated to manufacturing Human Expression products /Stationery, including 3 in France and 3 in India;
• ●6 locations are dedicated to manufacturing Flame for Life products /Lighters, including 2 in France;
• ●4 locations are dedicated to manufacturing Blade Excellence products/Shavers, including 1 in France.

The major related encumbrances correspond to depreciation.

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.

Since 2021, Representatives of various departments, including Sustainable Development, Purchasing, Legal and Risk continued working on implementing the Vigilance Plan. 

Efforts continued in 2022 with the focus on reassessing the Vigilance Plan and all the other elements of BIC’s Compliance Program.  

With a new Group Compliance Officer onboarded, it has been decided to review the existing Vigilance Plan and ensure its update. 2023 will be a year of new focus with the launch of a new risk mapping exercise together with a new Vigilance Plan .

The Executive Committee will continue to monitor the key non-financial performance indicators.

We continued the efforts started the previous years when two working groups carried out risk mapping to identify major risks:

• ●The first, overseen by the Sustainable Development Department and the Legal Department, focused on BIC’s operations;
• ●The second, overseen by the Purchasing Department, focused on BIC’s supply chain, as part of Writing The Future, Together program.

The working groups assessed major existing and potential risks across the supply chain, as well as opportunities designed to create value for stakeholders and the Group.

While in 2021 the risk mapping focused on assessing the risks associated with the supply chain, corruption risks were added to the map in 2022.

An Integrated Risk Assessment initiative was led by the central Enterprise Risk Management and the Compliance function using both a top down and a bottom-up approaches.

The results of this assessment were shared with the Executive Committee and key leaders within the company. For further details please refer to Section 2.2.

An external service provider, specialized in corporate social responsibility and responsible purchasing, supported the working group in developing the risk mapping tools and setting up action plans. The tools included the same rating scale as used for Group risk mapping (presented in Section 2.4 Risk management and internal control procedures implemented by the Company and Insurance).

The risk mapping methodology is built on :

• ●recommendations in the main relevant standards, such as ISO 31000 which provides a methodological risk management framework;
• ●expectations of outside stakeholders (e.g., French Anti-Corruption Agency, NGOs, clients) and internal stakeholders;
• ●requirements in the “Sapin 2” Act and EU Directive 2014/95/EU (on the non-financial performance statement) in terms of risk identification and prevention;
• ●UN recommendations and OECD guidelines regarding due diligence.

Both groups worked to identify and update the major risks and relevant actions on the four topics covered by the Act as well as business ethics through around 60 topics designed to sharpen the analysis and generate action plans.

This risk mapping (supply chain and Group activities) is regularly updated.

Major risks were identified by purchasing category:

• ●plastics;
• ●ink & chemicals;
• ●gas;
• ●metals;
• ●services (utilities and other services);
• ●logistics;
• ●subcontractors.
   

The Group involved stakeholders in the risk mapping process:

• ●internal stakeholders:
  • ●purchasers within the various purchasing categories,
  • ●Group Compliance Officer,
  • ●domain experts (EH&S, industrial facilities, sales in different geographical areas, HR, etc.);
• ●external stakeholders: some suppliers (plastics).

BIC will keep involving and consulting stakeholders regarding the Vigilance Plan in 2023, with the intent to review and revise the methodology with the support of external experts.

The Chapter 3 of the Universal Registration Document explores in detail the issues, policies, initiatives, accomplishments over the past year and BIC’s non-financial performance.

BIC has drawn up a series of documents to facilitate risk management. The ones that specifically address the areas covered by the Act and provide the basis for BIC’s Vigilance Plan are:

• ●BIC Anti-Corruption Policy (updated in October 2020);
• ● BIC Group Code of Conduct (issued in 2020 and reviewed in 2022);
• ●Health, Safety, Environment Policy (EH&S);
• ●BIC Charter of Diversity;
• ●Supplier Code of Conduct (issued in 2020);
• ●Global Procurement Policy (issued in 2020);
• ●Responsible Purchasing Charter (incorporated in the Supplier Code of Conduct issued in 2020).

These documents are listed in Section 3.4. 

Within the scope of the law, the major risks listed below represent the most critical risks identified both in terms of probability of occurrence and seriousness of potential impact.

• ●Since 2019, BIC has relied on a global Group procurement organization to achieve an integrated best practice approach. To this end, BIC Purchasing teams and Supply Chain teams have merged into a global department. One of its key priorities is to continually and consistently implement the supply-chain aspects of the Vigilance Plan (suppliers, subcontractors, transporters).
• ●BIC has also completed a raw materials audit encompassing 26 suppliers to identify and evaluate all supply chain risks for the Lighters category. Results were published in Q1 2021 and a specific mitigation plan was established. The methodology used was expanded to the other categories in 2021.
• ●In addition, the Responsible Procurement 2025 Road Map aims to identify value creation drivers in the supply chain and assess and mitigate any sustainable development risks. The execution plan provides for appropriate actions to be rolled out for each category and supplier type. In 2022, 65.5% of strategic suppliers had been brought within the program for at least one of the responsible procurement actions. The goal is for 100% of strategic suppliers to be part of the program by 2025.
• ●Furthermore, in 2019 and throughout 2020 and 2021, BIC implemented a Responsible Procurement Training Program as a part of the BIC Capability Building Program.
• ●The Group’s Supplier Code of Conduct launched in 2020 is shared with all BIC suppliers.
• ●In 2021, BIC developed and rolled out a third-party due diligence program to monitor, identify, mitigate and document any exposure to corruption and unfair practice risks. Such due diligence and mitigation efforts are managed and documented using an integrity tool which was recently updated in 2022. Further enhancements are planned in 2023 with the launch of a new policy and procedures. 
• ●The third-party due diligence program is a risk-based approach that:
  • ●categorizes & identifies suppliers,
  • ●performs risk assessments,
  • ●mitigates risks, and
  • ●monitors and continuously reviews suppliers and reports any risks on an ongoing basis.
• ●The first phase of the third-party due diligence program focused on BIC’s strategic suppliers and Contract Manufacturers. 
• ●In parallel, BIC has updated the list of strategic suppliers using specific criteria. 2022 being a transition year, the new evaluation is planned to be communicated in our 2023 Vigilance plan.

For further information on responsibility in the value chain, the steps taken and the results achieved, please see Section 3.3. Ethics and Business Conduct Across the Value Chain

Regular Assessment Process

BIC Procurement teams implemented the following process to ensure the risk mitigation measures are regularly assessed:

• ●Monitoring, screening, vetting and mitigating risks of strategic and high-risk suppliers including delisting;
• ●Monitoring of the CSR criteria in calls for tender or in referencing processes;
• ●Monitoring of the supplier panel through audits, documentation reviews, assessments, etc.;
• ●Monitoring of audit findings, documentation reviews, assessments, etc.;
• ●Monitoring of the corrective actions requested;
•  

Results – Key Non-Financial Performance Indicator

Key non-financial performance indicators  were defined and will be implemented according to the various purchasing categories.
 

The “BIC Speak-Up” hotline, which is accessible to all BIC team members and third parties, allows any breach of the BIC Anti-corruption Policy and BIC Code of Conduct to be reported (see Section 3.4 Business Conduct and Combatting Corruption). This offers a route for whistleblowers to make disclosures on risks covered by the Act. The hotline is accessible from BIC’s intranet and websites.

In 2022, 21 new cases  were reviewed and investigated thoroughly. 

A training for internal investigators was held in Clichy in September 2022, allowing few selected internal investigators from Europe to improve their technical skills and update them on the new law dated 21 March 2022 called “Waserman Law” aiming at reinforcing the protection of whistleblowers. 

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.

The effectiveness of risk management and internal control systems depends on the building blocks.

The Group has implemented a structured internal control system giving the appropriate guidelines and responsibilities to achieve the objectives laid down by the Board of Directors and Executive Committee. This organization is based on the definition of responsibilities and objectives by Management and then shared individually with team members.

Various tools have been put in place to support this structure and measure its effectiveness. Here is a list of the main tools shared by all Group entities:

• ●Code of Ethics (see Section 2.4.3.6 Team Members);
• ●Group Anti-Corruption Policy (see Section 2.4.3.6 Team Members);
• ●Group Vision and Values (see Section 2.4.3.6 Team Members);
• ●Group Accounting and Controllers’ Manuals. These manuals, distributed to all entities and available on the Group intranet, provide guidelines on:
  • ●bookkeeping and financial reporting under IFRS, and
  • ●procedures to respect the internal control system throughout the Company (i.e., Purchasing, Treasury, Tax, Sales, etc.);
• ●Fraud Reporting Protocol: The purpose of the Fraud Reporting Protocol is to ensure that all suspicions of fraud or actual cases are reported in a timely, consistent and uniform manner and to coordinate the subsequent investigations. A fraud reporting template has been provided to all BIC subsidiaries;
• ●BIC Speak-up hotline (see Section 2.4.3.6 Team Members);
• ●Human Resources Management Policy:
  • ●see Section 3.4. Our Social Responsibility,
  • ●Human Resources Management plays a full part in the effectiveness of internal control,
  • ●in particular, it ensures that the recruitment process reflects the knowledge and skills needed by the Group. Furthermore, it communicates Management’s objectives to each individual in accordance with their role and responsibilities,
  • ●for example, the Performance, Evaluation and Development (PED) tool was created to effectively achieve the following goals:
    • ●Cascading of the Company’s objectives to the team members throughout the year,
    • ●Training and development: see Section 3.4. Our Social Responsibility;
• ●Information Systems: Various IT systems are used depending on the business processes they support. They are organized primarily by continent. However, consolidation procedures are in place to provide access to consolidated results that Group Management can use to monitor performance and manage operations.

Most BIC entities use fully integrated systems (ERP) to help manage the business and report financial data using consolidation and management software (see Section 2.4.2.4 Internal Control Procedures).

Continents and countries are in charge of implementing operating procedures to secure access, back-up and recovery of critical system data.

The Company has implemented efficient information dissemination processes and systems that allow accurate communication to be shared with the appropriate level of responsibility and authority. The types of tools differ widely. They range from IT (Information Technology) solutions (including the Group intranet, the financial consolidation software, the integrated system implemented per continent, etc.) to existing procedures that encompass information management.

These information tools are designed to support the Company’s overall internal control system and to help with decision-making and follow-up for the achievement of Management’s objectives.

One of the goals of risk management is to address existing, evolving and emerging risks that may significantly impact the Company. It is not possible to address all risks. However, when addressed, the means used include a variety of internal and external mitigation processes and/or external insurance protection.

This specific process incorporates a three-step approach based on the following activities:

• ●risk identification and analysis;
• ●risk management and mitigation;
• ●risk monitoring.

The Group Risk Management Department uses the Enterprise Risk Management framework, Insurance Risk Management and Risk Advisory processes for the purposes of risk identification and analysis.

The identification process highlights the main risks arising from both external and internal sources. The key driver for identification is the potentially significant impact on the Company’s strategy, objectives, personnel, assets, environment and reputation.

The Group Risk Management Department, as process coordinator, challenges whenever necessary the answers received and the action plans brought forward in response to the identified risks. It also consolidates the documents and weighs the impact as input for the Group Risk Matrix. This matrix provides the impact for BIC for all risk categories. 

The Executive Committee manages the major risks identified in BIC’s risk mapping. These risks are monitored during the year. Progress and status of action plans related to certain key risks have also been reviewed and discussed at Board Meetings. The other risks continue to be monitored.

In addition, there are a series of procedures (see Section 2.4.2.4 Internal Control Procedures). The Executive Committee, continents, and centralized Departments such as Legal, Sustainable Development or Treasury, monitor risks on an ongoing basis.

They are involved in managing risks:

• ●the Group Treasury manages and monitors interest rate exposure and foreign exchange exposure daily along with liquidity risk;
• ●the Legal Department regularly monitors changes to laws and regulations and ongoing litigation;
• ●the main industrial and environmental risks are considered by Management and the Sustainable Development Department;
• ●the Executive Committee manages the significant strategic and operational risks.

There is also a yearly review of the Insurance coverage process: see Group Presentation – Section 2.4.4 Insurance – Coverage of Risk.

The Executive Committee performs regular reviews of risk exposure. Each site/department creates its own scorecards and key indicators to detect, follow and measure the effectiveness of risk mitigation.

In 2021, BIC established a centralized Enterprise Risk Management (ERM) program with focus on key risks treatment. The critical risks identified in 2019 have been re-assessed and are currently being monitored at the Executive Committee level lead by the ERM governance.

The accounting and financial information used internally by management, or for the purposes of external reporting, is prepared in compliance with the IFRS (International Financial Reporting Standards) as adopted by the European Union.

The information follows a bottom-up reporting process from the local statutory accounts to the consolidated and management financial statements. This reporting is done using consolidation software following each monthly closing.

The finance teams in each subsidiary, under the control of their respective Finance and Operations Directors, report to the business unit finance teams and then to the Group.

The local external auditors audit this package for the largest entities. Statutory auditors prepare memorandums and a summary of significant comments for the Group.

Cost controllers work closely with operations and report to local Management and functionally to the continent/category Finance Director.

The Group developed a Controllers’ Manual of policies and internal procedures that was presented and communicated to Finance Directors in the subsidiaries. This review is ongoing, with key policies and procedures updated and validated by functional managers as required. When a new policy is established, or an existing policy updated or enhanced, the information is communicated and posted on the employee intranet and is also cascaded down to all subsidiaries by the Executive Committee.

The reporting procedures within the Group are as follows:

• ●the Group finance information system allows preparation of statutory consolidations and management consolidations within the same reference frame;
• ●the Group also uses a detailed sales reporting system. A monthly reconciliation is prepared between the sales reporting and financial information systems. Any meaningful variance is explained;
• ●the Group financial information system is used in all subsidiaries. This allows analysis at each reporting level (subsidiaries, continents, Group or by product category) starting from the same source data and using the same reporting format;
• ●the Group internal financial information is analyzed monthly and compared against the budget at subsidiary level. The Executive Committee also reviews the consolidated data and related analysis monthly;
• ●an analysis is done between the budget, forecasts and the strategic plan and is reviewed by the Executive committee;
• ●the Group Chief Financial Officer validates the consolidated financial information. Significant issues are reviewed with the Chairman of the Board and the Chief Executive Officer;
• ●the Audit Committee validates this information and provides the Board of Directors with a report if necessary;
• ●the external auditors are involved in the annual validation of the financial information production process.

The account closing process includes the following in particular:

• ●the fixing and circulation of accounting rules by Group Finance via the Group Accounting Manual;
• ●the preparation and sending of a calendar and instructions to the affiliates by the Consolidation Department at each monthly closing;
• ●the existence of a checklist with the corresponding tasks to be performed by the subsidiary for the account closing.

As already mentioned, internal control is decentralized within the Group. It is thus the responsibility of each organization (subsidiary, department, category, continent, etc.) to establish the relevant procedures in all relevant sectors to support the objectives and definition of internal control.

However, as a global framework, the Group Controllers Manual provides the general guidelines to be adopted, following adaptation, at the respective level of internal control.

The Group’s main procedures are described below.

Any commitment to purchase capital investments and goods and services is subject to an appropriate  authorization process. The authorization is the key driver for the rest of the process, from acknowledgment of receipt of the purchased goods or service to payment of vendors.

The Group has accordingly implemented an authorization matrix that identifies the level of responsibilities required in accordance with the amount to be committed. All authorizations must be formalized in the appropriate form or via the IT systems. The delegation of authority matrix is regularly updated to reflect changes to the Group’s organization.

This approval process is the cornerstone of the three-way matching procedure applied within the Group. Starting with an approved purchase order, it requires that matching is performed at the following stages:

• ●upon delivery/provision of service with proof of delivery or completion;
• ●when receiving the supplier’s invoice for the purposes of generating payment.

The three-way matching process ensures the segregation of duties principle is applied and allows clear tracking of the validity of transactions throughout the purchasing process.

In terms of capital expenditure, an additional step is required to green light the purchase. Prior to any investment, specific documentation is prepared to bring together all necessary information like description and return on investment, approvals to reflect the level of commitment and a post-acquisition audit schedule.

In terms of organization, attention is drawn to the segregation of the procurement function from purchasing. The goal is to mitigate any risk of overlapping responsibilities. This process also centralizes at Group level the procurement flows for strategic materials. This is intended to better control demand and the level of financial commitment.

Finally, vendor management, including the suppliers’ database, also follows specific control procedures and rules throughout their relationship with the Group.

The selling procedures follow common rules and principles. They are nevertheless tailored for local markets and customers, based on the existing nature of transactions.

These common principles deal in particular with:

• ●the validity of selling prices and selling terms and conditions (price list set-up process, special pricing authorization schemes, etc.);
• ●the completeness and accuracy of the selling orders received through different channels;
• ●respect of recognition timing with an emphasis on cut-off processes and adjustment procedures;
• ●the fair value of trade receivables with procedures for bad debt reserve computation and credit note issuance.

Similar to relationships with suppliers, procedures deal with customers’ master file management, including the creation of new accounts, the cash allocation process for payment receipts and credit management.

The management of inventory covers physical custody of the goods, valuation of these items and monitoring of the related flows. The procedures in place thus address all these topics.

Regarding physical safeguarding, Group policies are provided on top of local regulations. They deal with:

• ●the safety objectives for the team members involved in inventory management;
• ●asset security with clear guidelines in terms of storage conditions, stock-take processes and segregation of duties.

In terms of valuation, a BIC costing procedure is in place to help local controllers follow Group rules as well as comply with local accounting and financial standards. The Group rules can be found in “Note 1 to the consolidated financial statements – Main Rules and Accounting Policies”.

Mostly centralized within Group Treasury, some aspects of cash management are kept at local level. In both instances, procedures are in place to cover:

• ●cash balance and payment management including physical safeguards, the performance of bank reconciliations and supervision of segregation of duties;
• ●bank mandates and management of authorized signatures;
• ●debt financing – both short and long-term.

Centrally, the Group Treasury follows specific procedures regarding its investment portfolio and foreign exchange exposure management.

As indicated above, asset security is a top internal control priority with relevant procedures in place within the Group.

With it being essential to ensure that assets actually exist, local sites are instructed to do regular physical inventories and reconcile them with the financial systems.

In addition to the aforementioned investment authorization process, there are dedicated procedures for all fixed asset movements (i.e., transfers, disposal and sales).

Finally, specific rules are required for the management of the Fixed Asset Registers to support compliance with both local and Group accounting standards and to permit efficient control activities.

All Group levels are involved in control activities to ensure that Group rules, guidelines and procedures are properly applied.

Moreover, the Internal Control & Audit Department ensures through its annual audit plan that there is no material discrepancy with Group procedures.

This control covers both operational and financial environments and focuses on:

• ●the validity of operations and transactions, including the authorization processes for expenditure and investment;
• ●completeness of transaction reporting;
• ●proper evaluation and recognition of transactions for accurate information availability and disclosure.

The Board of Directors of SOCIÉTÉ BIC, which represents the Shareholders, always acts in the Company’s interests. It must also review and approve the Company’s strategic objectives.

The BIC Executive Committee consists of a team of leaders who meets regularly and works closely with Gonzalve BICH, Chief Executive Officer, to set the Group’s long-term vision and strategy for profitable growth. Its members are:

• ●Thomas Brette: Group Partnerships & New Business Officer.
• ●François Clement-Grandcourt: Group Lighter General Manager;
• ●Gary Horsfield: Group Supply Chain Officer;
• ●Sara LaPorta: Global Strategy and Business Development;
• ●Mallory Martino: Chief Human Resources Officer;
• ●Elizabeth Maul: Group Insights, Innovation and Sustainability Officer;
• ●Charles Morgan: Chief Administrative Officer;
• ●Chad Spooner: Chief Financial Officer;
• ●Chester Twigg: Group Commercial Officer;
• ●Esther Wick: Group General Counsel.

This structure allows BIC to benefit from the collective experience and expertise of this group of talented leaders and realize its growth potential. Whenever greater depth or breadth of knowledge and expertise is called for, the Executive Committee will also now have access to the views of an extended Leadership Team.

The Group Supply Chain Officer and the Group Insights and Innovation Officer are directly responsible for Manufacturing, New Product Development, Research and Quality Assurance.

The Executive Committee also monitors the strength of internal control processes and the implementation of risk coverage. It also ensures, with the support of the Group Chief Financial Officer, that indicators:

• ●are consolidated to measure operational performance versus the budget; and, if necessary
• ●focus on variances and any corrective measures that may be necessary.

In addition to the budget, forecasts are prepared and revised during the year to monitor budget achievement and get insights into any current marketplace dynamics. A strategic planning process is in place to help identify future growth opportunities.

The Audit Committee (see Section 4.1.4.3 Committees set up by the Board of Directors), as part of its remit to support the CEO, regularly monitors the risk management and internal control systems. The Committee can interview the Internal Audit Director for updates on the work done during the year and can give its opinion on the department’s organization. A summary of internal audit findings is shared with the Committee annually.

The Internal Control and Audit Department reports operationally to the Chief Financial Officer and, upon request, to the Executive Committee and the Audit Committee.

This department reviews both financial and operational activities and provides an independent assessment of the level of compliance with the Group’s policies, rules and procedures. The IC&A Department focuses on:

• ●business cycle and process reviews (3) at both subsidiary and Corporate level;
• ●testing of existing controls to ensure effectiveness and efficiency;
• ●coordination with functional managers on the ongoing updating of the Controllers’ Manual;
• ●issuance of guidance and recommendations to improve existing processes, including sharing of Group best practices.

The IC&A Department also:

• ●assists with timely and specific engagements, such as external acquisitions and internal restructuring;
• ●provides assistance on fraud prevention, awareness and any investigations into reported fraud within the Group;
• ●looks at Group information systems through reviews of Information Technology accesses and business continuity procedures;
• ●presents an annual audit schedule to the external auditors, provides updates and shares site review findings;
• ●coordinates site reviews with Group Finance and the external auditors to ensure coverage of any specific areas.

A multi-year audit rotation schedule is in place to ensure that all major sites and key processes are reviewed on average every five years. The 2022 schedule saw the IC&A Department do four audits in manufacturing and distribution entities, combining initial and follow-up visits and investigations.

These audits were done in line with the methodology and procedures established by the IC&A Department, This included in particular:

• ●performance of tests (walkthroughs and detailed testing) and interviews with the contributors to the cycles reviewed on a risk-based approach;
• ●the issuance of a post-audit report, listing recommended improvements for the site/department, with a clear action plan and deadlines. The IC&A report is an excellent communications tool and plays an important role in the ongoing improvement of controls within the Group.

No significant issue was identified as a result of these audits. The audit findings highlighted necessary improvements to make certain controls more effective. Local Management has shared its response to these recommendations and proposed action plans, together with the related implementation dates and who is responsible for their implementation. These implementations have been checked during follow-up visits by the IC&A Department.

Furthermore, quarterly follow-up of action plans allows for efficient monitoring of progress on recommendations on key audit matters. Dashboards are shared quarterly with the representatives of the continents and categories. Finally, best internal control practices identified during these reviews are shared within the Group.

The IC&A Department collects the data reported by subsidiaries and does analyses to enhance the risk-based approach used to establish the annual audit plan and undertake audit work. The results will be shared with Group Statutory Auditors and the Audit Committee.

A summary of the work done by the IC&A Department during the year is presented to the Executive Committee and the Audit Committee. This includes an overview of the main audit findings and recommendations, as well as a summary of the risk analysis and progress on action plans.

The IC&A Department will continue to focus on:

• ●process and efficiency improvements;
• ●testing of operational effectiveness of key controls; and
• ●enhancing the overall review process.

The annual audit schedule, prepared by the IC&A Department and approved by the Audit Committee and the Executive Committee, satisfies the multi-year rotation principle for site and process reviews. 

The Group Risk Management Department reports to the Chief Financial Officer. Its mission is to foster stronger risk capabilities and culture to protect the company’s assets and support BIC’s strategy. Group Risk Management is responsible for:

• ●the Enterprise Risk Management framework;
• ●the Insurance Risk Management Program; and
• ●providing Risk Advisory to the organization.

Enterprise Risk Management is a framework encompassing processes, capabilities and culture within the organization to:

• ●identify, assess, mitigate, monitor and manage potential enterprise-wide non-routine risks;
• ●while strengthening the company’s ability to achieve its strategic objectives.

Insurance Risk Management is the practice of identifying and analyzing loss exposures and taking steps to minimize the financial impact by transferring them using insurance and preventive risk management practices.

Risk Advisory is designed to ensure decision-making aligns with risk appetite and tolerance and to further enhance business resiliency.

In the course of the above work, Group Risk Management also coordinates risk monitoring in tandem with the Executive Committee.

All team members are involved in internal control processes and risk management activities in line with their respective knowledge and scope of work. They have access to information used to design, operate and monitor the internal control system. The Group Internal Control Policies, including the Group Controllers’ Manual, are available online for team members with access to the Group Intranet.

To strengthen the commitment of all team members to internal control, the Group’s values are posted at all Group locations so that all team members have access to them.

In 2022, the Company invested in the Qualtrics tool – a best-in-class survey tool with relevant benchmark information. The pulse surveys and engagement surveys that are run in this tool allow us to continue to measure multiple aspects of engagement andadherence to our values. In the latest survey run in 2022, employee engagement was favorably assessed at 75%, representing strong engagement at 1% above the market norm. Significant drivers of overall engagement focused on the favorable assessment of willingness to stay with BIC and recommending BIC as a good place to work.

With 83% of team members surveyed expressing their pride to work for BIC, 76% of those surveyed believe BIC is a diverse and inclusive work environment, which positions the company almost 3 points above the market benchmark.

The questions on values received broadly very favorable responses and were specifically strong with respect to responsibility and ethics. 

The Group Code of Ethics is available to all team members on the Group Intranet. 

A Group Anti-Corruption Policy is available to all team members on the Group Intranet. This states that the Group prohibits all forms of bribery and corruption and upholds our reputation for integrity.

The Group offers a hotline service called "BIC Speak-up", accessible from BIC’s intranet and websites.It provides an alternative channel for team members to disclose concerns confidentially and anonymously. It is designed to provide effective lines of communication for team members and empowers BIC to promote safety, security and ethical behavior.

A Charter of diversity is shared by all entities :

• ●to help prevent discrimination in the workplace; and
• ●to continually improving and educating team members on the importance of diversity.

BIC Group uses insurance as a means of transferring its major risks to the insurance marketplace. This is done through a series of insurance policies arranged with reputable insurers. This transfer operates on two tiers:

• ●global Insurance Program, which covers all Group affiliates, except where legally prohibited; and
• ●local policies to address compulsory insurance where required.

Furthermore, some local affiliates may have additional insurance for special and/or specific needs.

The Group’s global insurance program is intended to provide a uniformly high level of risk management and insurance protection for all BIC operating entities. This policy should help protect assets and hence revenue from risks that may be insurable or controllable.

BIC Group maintains the following main international insurance programs:

• ●liability insurance including risks related to products. This covers losses from third-party claims of bodily injury and property damage, including operational and product liability;
• ●environmental Impairment Liability insurance related to gradual pollution and accidental pollution;
• ●property Damage and Business Interruption insurance. This covers risks of loss due to fire, explosion, water damage and other natural disasters;
• ●goods-in-Transit insurance covering loss or theft of goods and/or products during shipment;
• ●crime insurance related to the risks of fraud, theft and falsification;
• ●employment Practices Liability insurance covering alleged discrimination, wrongful termination and sexual harassment.

As a general rule, coverage is based upon a replacement cost valuation of the insured property and business disruption costs. Some coverage may, however, be capped and/or sub-limited as to total payouts under the terms of the policy.

BIC Group also has other types of insurance in line with legal requirements in the countries in which it operates.

The overall cost of Group insurance programs with third-party insurers was estimated to be around 9.0 million euros in 2022.

Self-insured or retained risks are also held by BIC Group. This is typically in the form of insurance policy deductibles, retentions, or other uninsured exposures that may not be insurable in the traditional marketplace.

In the U.S., BIC Corporation has a wholly owned captive insurance company, SLS Insurance Company Limited (SLS), covering specific risks in the U.S. These include:

• ●Commercial General Liability and Products Liability coverage for alleged third-party bodily injury and property damage;
• ●DIC/DIL providing Difference in Conditions/Difference in Limits insurance to supplement certain other traditional insurance policy coverage and/or deductibles;
• ●Medical Stop Loss coverage relating to the employee benefits health program;
• ●TRIA (Terrorism Risk Insurance Act) NBCR (Nuclear, Biological, Chemical, and Radiological Terrorism). 

The other Group entities are insured under traditional insurance programs.

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.

Sustainable development is incorporated into the Company’s decision-making process from the perspective of risks to be controlled and opportunities to be explored. Topics related to sustainable development are regularly discussed and executed at Executive Committee meetings. These in particular include:

• ●issues concerning plastic;
• ●the “Writing the Future, Together” program;
• ●the development of responsible products (see Section 3.2.3); and
• ●progress reviews of other sustainable development efforts (responsible communication, emerging issues, etc.).

The Sustainable Development Program’s goals and progress are presented to the Board of Directors at least once a year and at the Annual Shareholders’ Meeting. In 2022, the Board reviewed the progress of “Writing the Future, Together” commitments. In addition, the Audit Committee is kept abreast of the policies and programs implemented.

Since 2017, the Nominations, Governance and Corporate Social Responsibility (CSR) Committee reviews the actions taken by the Group as part of its Sustainable Development Program. It also monitors the implementation of the “Writing the Future, Together” strategy as well as the Group’s progress on responsible innovation, circular economy and the development of new responsible products.

BIC’s Sustainable Development Department is part of the Group Insights & Innovation (GI&I) and Sustainability division. Its focus is on products and innovation. The Sustainable Development Department, while continuing to pursue transversal missions, also works closely with the innovation and product design teams. This provides ongoing support to help facilitate responsible innovation and speed improvements in the carbon footprint and/or societal impact of products.

In 2021, a Group Insight, Innovation & Sustainability Officer was nominated to the Executive Committee. This person leads Sustainability and Market & Consumer Insights, Research & Development, Brand & Portfolio Management, and Intellectual Property (IP) Innovation teams, in addition to GI&I, HR, Finance and Innovation Program Management. This officer guides these teams to create new tools and ways of thinking to drive innovation and sustainability.

The Brand and Sustainable Development Director who oversees all Sustainable Development topics within the Company reports to the Group Insights, Innovation and Sustainability Officer who is a  member of Executive Committee.

The integration of sustainability strategies and performance incentive schemes is detailed in Chapter 4: Corporate Governance (See section 4.2.2.).

BIC has identified nine main non-financial risks resulting from its operations and the use of its goods and services:

• Risks related to plastics: plastic waste and resource depletion [NFPS risk 1] (see Section 3.2.3.1);
• Risks related to climate change [NFPS risk 2] (see Section 3.2.1.1);
• Risks related to product safety and consumer health & safety [NFPS risk 3] (see Section 3.3.4.2.1);
• Risks related to health & safety of team members [NFPS risk 4] (see Section 3.3.1.3.1);
• Risks related to non-respect of human rights (child labor, international conventions, ILO) [NFPS risk 5] (see Section 3.3.2.1);
• Risks related to unfair practices (corruption) [NFPS risk 6] (See Section 3.4.1);
• Risks related to our operations and the environment [NFPS risk 7] (see Section 3.2.2.1);
• Risks related to reputation and brand [NFPS risk 8] (See Section 3.3.4.1.1);
• Risks related to experienced team members and skills [NFPS risk 9] (see Section 3.3.1.4.1).

The risks related to tax evasion are not identified as major CSR risks for the Group.

The method for identifying these risks and evaluating their degree of criticality is described in Chapter 2 of this Universal Registration Document.

The summary table of the Non-Financial Performance Statement in section 3.5.1. summarizes the information required by French executive order No. 2017-1265 dated August 9, 2017(5).

[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).

BIC is committed to ensuring that its facilities, including both factories and offices, operate in an environmentally responsible way. BIC strives to reduce any 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.

[NFPS risk 7] BIC has identified risks related to its operations and the environment among its main CSR risks. The environmental impact of BIC’s manufacturing operations primarily molding and assembly of plastic products remains relatively low.

Reducing the environmental footprint of its factories is also a source of opportunity for BIC which include:

• ●optimizing production costs by limiting resource consumption (water, energy, etc.) and the production of factory waste;
• ●facilitating the integration of factories into their local surroundings by reducing their environmental footprint, adopting best practice and reaching out to local communities;
• ●study processes to reduce carbon emissions in the coming decades.

Defined in 2005, the Environment, Health & Safety (EH&S) Policy, codifies the Group’s commitment to minimizing the environmental and safety impact of all its operations to better protect the environment. The Policy specifies BIC’s dedication to:

• ●pollution prevention;
• ●health and safety risk prevention;
• ●regulatory compliance;
• ●continuous improvement;
• ●awareness and involvement.

Since 2010, the EH&S Policy is deployed at all BIC industrial facilities. BIC maintains a formal procedure to review the BIC EH&S Policy to ensure that it remains relevant and appropriate to the business. This procedure describes a periodic assessment and revision of the Policy to ensure it remains appropriate in light of any changes to the Group’s activities and products, including acquisitions and changing stakeholder expectations. An updated EH&S Policy was signed by the CEO in November 2022.

Since 2018, all BIC facilities (factories, packaging or distribution centers, head offices and other offices and installations) have been equipped with a system for documenting and managing safety incidents. This is part of the implementation of the “Writing the Future, Together” commitment #3  (see Section 3.3.1.3).

The EH&S Policy requires factories to implement pragmatic management systems designed to involve all stakeholders, as well as to drive continuous improvement of operational performance. Every BIC factory has a local EH&S manager in charge of rolling out these management systems. Furthermore, the Group employs a central EH&S manager who guides and coordinates the network of EH&S managers. This person ensures that all facilities comply with the Group’s Policy and objectives, and monitors facility performance by consolidating, analyzing and communicating the results achieved.

The environmental management system helps ensure compliance with applicable environmental laws and regulations. This may include daily or periodic checks to comply with local regulations. These may be done internally or with the assistance of an independent outside Company. An action plan is drawn up to correct any compliance issues identified.

Within the framework of the management systems, an in-depth review is completed of all aspects of the facility's activities and environmental impact (water, air, soil, noise, etc.). Action plans are then drawn up to limit this environmental impact. Simple improvement targets are set for the factories to contribute to the Group’s overall environmental performance while meeting their own specific challenges (production, resources, geographic location, etc.).

The environmental management systems rolled out at the Group’s industrial facilities call for contingency plans to deal with pollution accidents with off-site consequences. Emergency prevention and response plans have been established in locations where there is an identified risk of an accident with consequences beyond plant boundaries.

In particular, in France, the two SEVESO plants (BJ 75 and BIMA) have emergency procedure protocols (plan d’opération interne and plan particulier d’intervention), and a major hazard prevention policy (politique de prévention des accidents majeurs). They also have a Safety Management System. In 2022 BIC Conté in France launched a project to study soil decontamination at the Boulogne site.

Outside France, notably in the U.S., some factories have equivalent emergency plans that address risks with potential off-site consequences.

Supplementary pollution prevention projects in 2022 include the creation of a biodiversity park at the BIC Cello Facility (Cello Plastic Product  PVT. Ltd).

In 2022, the implementation of BIC management systems at Group industrial facilities was 80% complete for the environment and 86% for health and safety.

Beyond the implementation of management systems, BIC also continually invests in obtaining and renewing certification. In 2022, BIC Cello KBL obtained the ISO 9001 certification and since 2021, the following certification were obtained or renewed:

• ●ISO 14001: BIC Écriture 2000, BIC South Africa, BIC CORP – Milford, BIC Rasoirs, BIC Shavers Mexico – Industrial de Cuautitlan;
• ●ISO 45001: BIC Rasoir;
• ●ISO 50001: BIC Violex, BIC Amazonia.

To ensure best practices, BIC’s sustainable development approach covers all its operations, including its offices, although they represent a non-significant part of the Group’s environmental impact. The environmental performance of the Group’s four main offices (Clichy in France, Shelton in the United States, Barueri in Brazil and Sofia in Bulgaria) is presented together with the performance of the Group’s industrial facilities.

Initiatives have been taken at these facilities to reduce their environmental footprint. The offices in Shelton, United States, were granted LEED (Leadership in Energy and Environmental Design) certification in 2009 and are powered by renewable electricity. BIC Clichy teams moved to a brand new BREEAM and HQE certified building in June 2022. This building is powered by 100% renewable electricity. This move allowed for a transformation to increase flexible working arrangements which significantly improved the local team member’s working conditions. To encourage eco-responsibility in the building, the local teams organized a series of workshop to raise awareness on the impact of climate change (Climate Fresk) and BIC’s sustainability progress.

Beyond accounting for its own environmental impact, BIC also looks at the impact of its supply chain. Since 2014, the Workplace Conditions Assessment (WCA) platform for auditing the working conditions of subcontractors (see Section 3.3.1.3) has included a comprehensive questionnaire on environmental performance, accounting for 6% of questions. In 2022, 31% of subcontractors  were audited.

Seven facilities show a moderate risk of water stress (in Europe, India and Mexico). This is according to a global risk assessment on climate change risks including a water stress test completed by BIC in 2022. The Group will continue to seek to improve its water consumption ratios, factoring in the scarcity of this resource when prioritizing its action plans for the reduction of water consumption. In 2022, BIC Nigeria completed a new water treatment construction as well the installation of new toilet facilities that will improve local water management.

BIC consumed 372,349 m3 of water worldwide in 2022.

There was a 19% decrease in water consumption per ton of production between 2021 and 2022. BIC production is not water intensive and most of the consumption is due to domestic use. In 2022, water management, improvement in cooling process and overall maintenance contributed to this decrease in water consumption. 

In addition to the volumes consumed, it is essential to consider where this consumption takes place. It can occur in so-called “water stress” zones. The uneven distribution of water across the planet, and limited access to it, may give rise to severe political and social tensions.

BIC produces and markets consumer products that are lightweight, long-lasting and affordable for all. From day one, BIC® products have been designed and made with the  minimum use of raw materials.

At BIC, this approach is reflected in the “4 Rs” philosophy (Reduce, use Recycled and alternative materials, Refill, Recycle) based on the circular economy principles. Through its “Writing the Future, Together” program, the Group goes even further. This is reflected in its commitment to accelerate the integration of recycled and alternative materials into its products and improve their environmental, social and societal performance. EMA (EMA – Environmentally & socially Measurable Advantage), the Group’s Sustainable Scorecard, has been incorporated into product design processes.

BIC also contributes to the development of the circular economy by establishing partnerships to use secondary raw materials. It is also involved in creating a pilot channel for the recycling of stationery products, shavers and lighters.

BIC® products are designed to meet and anticipate the expectations of all consumers in developed as well as developing countries. The Group also takes all necessary steps to uphold its brand image and preserve its reputation.

To manufacture its products, BIC uses raw materials (plastics, inks, packaging and metals, etc.), natural resources (water and energy) and generates waste.

Product life cycle studies show that a product’s environmental impact is primarily determined by the raw materials used and its service life. The challenge is therefore to minimize raw materials and maximize the product’s lifespan. In fact, the more lightweight a product and the longer it lasts, the better its environmental performance.

Starting in 1994, when BIC conducted its first life cycle studies, the Group set out its founding principle of “just what’s necessary”(17). The idea is to offer fairly priced products with lower environmental impact.

BIC has identified the following risks among its major CSR product-related risks:

• ●risks related to plastics [NFPS risk 1], including:
  • ●upstream: the use of plastic in BIC® products. This contributes to the depletion of a non-renewable resource, which is therefore subject to scarcity and price volatility,
  • ●downstream: pollution from plastic waste.

In addition to these issues, there is also the ever-growing body of regulations on the use of plastics as well as the perception of consumers and citizens;

• ●risks related to climate change [NFPS risk 2] resulting from the use of petroleum-derived raw materials (plastics). A plan to manage these risks includes an effort to reduce the use of petroleum-derived raw materials and to employ more recycled and alternative ones (also see Writing the Future, Together # 1 Section 3.1.1.3).

The challenges related to plastic waste and resource depletion also offer opportunities. These include:

• ●increasing the use of recycled and alternative materials in products to promote more responsible consumption;
• ●creating circular economy loops that enable the collection, recycling and reuse of the products;
• ●offering unique BIC® products that provide environmental and social benefits in its markets.

The circular economy consists of producing goods and services in a sustainable way by limiting the consumption and wasting of resources as well as the production of waste. The goal is to transition from a society based on a linear extraction-production-waste model to a more circular economic model(19):

At BIC, the principles of the circular economy are embodied in the Group’s “4 Rs” philosophy. This serves as a guide for all its “product” processes:

• ●Reduce the consumption of materials;
• ●use Recycled or alternative materials;
• ●design and manufacture Refillable products and packaging whenever possible;
• ●design and manufacture Recyclable products and packaging.

In 2020 aligned with its “4 Rs” philosophy, the Group made new commitments to:

• ●use more recycled and alternative materials in its products; and
• ●speed the transition toward reusable, recyclable or compostable packaging.

In practice this means that:

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

In addition:

• ●by 2025, 100% of BIC paper and cardboard packaging will be from certified sources and/or recycled;
• ●by 2025, 100% of BIC plastic packaging will be PVC-free;
• ●by 2025, 75% of the material used in BIC plastic packaging will be recycled.

These goals were defined by ad hoc working groups bringing together all the relevant Group entities (Insight & Innovation, Global Supply Chain, Lighter and Commercial). These are based on recommendations and expertise from outside the Group (in particular the Ellen MacArthur Foundation).

These goals have been incorporated into the “Writing the Future, Together” program (#1 Fostering Sustainable Innovation in BIC® products) and supplement the commitment made in 2018 to implement the “4 Rs” philosophy as well as other environmental and social principles (responsible chemistry, affordability, etc.) as part of the Group’s day-to-day operations.

BIC has always sought to optimize raw material use. An expert in plastic processing, BIC works above all to minimize usage and regularly updates its product designs to optimize and reduce its consumption of materials.

In the Human Expression division, the BIC® Cristal® ball pen, one of the Group’s flagship products, exemplifies this approach. Even though its design already optimized the use of materials in 1950, it continues to benefit from ongoing research to minimize the materials used:

• ●it has a minimum writing length of over 2-km;
• ●it uses only 2.9 grams of material per kilometer of writing, compared with 6.6 grams for a competing product with comparable characteristics.

In the Blade Excellence division, BIC stands out thanks to its highly competitive price/quality ratio. For each product range, this price/quality ratio is made possible by the development of products with an optimal quantity of materials and keeping them as simple as possible.

For example, the BIC® Simply Soleil® shaver is designed to weigh as little as possible. Although it is hollow, its handle nonetheless ensures a high level of performance, quality and comfort in shaving.

BIC’s Flame for Life division is recognized as a champion in manufacturing safe, long-lasting high-performance lighters, using a minimum amount of materials while offering the best service to consumers. For example, the BIC® Maxi lighter (#1 bestseller) provides up to 3,000 lights with less than 24g of raw material.

An example of the Group’s continuous improvements to reduce the quantity of raw material and packaging is the launch between 2020 and 2021 of the new BIC EZ Reach™ multi-purpose lighter using four times less plastic and 30% less packaging and reducing carbon emissions by 66% compared to the regular and larger multi-purpose lighters.

Since 2014, BIC has been researching how to maximize recycled and alternative materials in BIC® products. The research teams have identified all BIC® products that could employ alternative/recycled materials without sacrificing quality. The challenge is:

• ●to ensure a perennial source of such materials that meet the specifications;
• ●to convert any products that lend themselves to such adaptation.

To identify recycled or alternative materials, BIC Research and Development teams, in collaboration with the Purchasing Departments, focus on two approaches:

• ●the use of existing innovative materials. An inventory of innovative materials for industrial use is kept available. From this list, engineers select materials that satisfy industrial and economic requirements to conduct feasibility tests. Depending on product applications and implications, the Group’s marketing teams can be consulted in order to to test for consumer reactions;
• ●collaborative research with suppliers to identify new materials (e.g. plant-based or recycled, etc.), new concepts (materials from new recycling techniques) or hybrid materials. Many materials are considered and then analyzed. These have included potato starch, sugarcane, plant fibers, wood chip, etc. Once a formulation is ready, it is tested to ensure that it meets industrial quality and safety specifications, sometimes going all the way to the finished product approval stage.

Exemplifying this approach, the BIC® Ecolutions® range is a complete Stationery line that consists of products manufactured using recycled materials in compliance with ISO 14021. All Stationery lines now include at least one product made with alternative materials (in particular recycled).

A Velleda® whiteboard containing 50% pencil production residue was launched in France in 2019.

In 2021, BIC launched the BIC® ReVolution line in the United States. It includes ballpoint pens, mechanical pencils, permanent markers and correction tape made from alternative materials. The BIC® ReVolution retractable ballpoint pen is made from 73% recycled plastic, the stick ball pen contains 74% recycled plastic, and the mechanical pencil is made from 65% recycled materials.

In 2021, BIC has also launched a Shaver in alternative material, BIC Bamboo™, available  in Sweden. This system shaver has a handle made from natural, renewable and responsibly sourced bamboo.

In the same year, BIC has also included recycled content in BIC Soleil® Click 3 and BIC Soleil® Click 4 (30% of recycled content in the handle) and in BIC® Hybrid 3 Comfort®, Hybrid 3 Flex® and Hybrid 3 Flex Sensitive® (90% of recycled content in the handle).

Finally, BIC launched in 2022 the upgraded BIC Soleil® Click 5, following a partnership with the supplier Avient to incorporate recycled-content thermoplastic elastomer in its handle a first in the Blade Excellence division, reaching over 40% of recycled content in total.

In 2022, BIC launched the new BIC® Maxi Ecolutions, a new version of the BIC® Maxi Lighter using alternative materials such as bio-attributed plastic and 55% recycled metals

In keeping with its “4 Rs” philosophy, BIC makes an ongoing effort to launch refillable products. However, in the case of low-end Stationery products consumer demand for refills is virtually non-existent. In the case of lighters, BIC’s highest priority is ensuring consumer safety.

In the Human Expression division, BIC continues to offer refillable pens: the BIC® Gel-ocity® line of gel ink pens and the 4-Color™ line are all refillable. As an example, in France and UK markets, pen refills are available on www.bic.com.

In 2021, the Group launched BIC® Cristal® Re’New®, a premium, refillable, and even more durable version of the emblematic BIC® Cristal® pen. It features a matte metal barrel and a push-button for easy refilling and is sold in cardboard packs containing one pen plus two refills.

In the Blade Excellence division, the BIC® Hybrid shaver has one handle and four-to-six razor cartridges. The underside of the handle is also ribbed to reduce the use of plastic without altering the shaver’s ergonomic characteristics, which are the same as conventional handles. Because it comes with four-to-six heads razor cartridges, the product’s performance life is at least four times that of a standard non-refillable shaver. Over its life cycle and for one year of shaving, the environmental impact of the BIC® Hybrid shaver is 28% lower than that of a similar  non-refillable BIC® model such as BIC® Comfort 3® Action®.

In 2020, BIC acquired Rocketbook®, the number one brand in the United States for reusable smart notebooks. Its products meet the needs of many consumers, allowing them to scan, store and share handwritten notes quickly and efficiently in an environmentally-friendly way. The line of affordable, innovative products from Rocketbook® offers consumers a complete and sustainable ecosystem for writing and creativity.

In keeping with its “4 Rs” philosophy, BIC constantly strives to make its products more recyclable. This is achieved by improving their design and by exploring all available recycling channels to understand the product end-of-life phase.

Since 2011, BIC has been exploring channels for the recycling of its products. Working collaboratively with different stakeholders, BIC initiated an independent recycling industry, which offers a unique circular economy model in France. This circular economy sector is built on two key partnerships:

• ●BIC’s partnership with TerraCycle® for the collection of used writing instruments in Europe since 2011. A pioneer in this field, the program allows product users to organize the collection and recycling of all types of writing instruments, whether or not BIC® branded. For each instrument collected, one euro cent is donated to a charity or non-profit of the organizer’s choice or, in the case of schools, directly to the school to fund educational projects. At end-2022, over 73,3 million pens had been collected and 854,000 euros in donations made. This program, funded entirely by BIC, enables the Group to:
  • ●gain a better understanding of the mechanisms of recycling systems;
  • ●encourage responsible consumption (using products up to the very end of their service life); and
  • ●promote waste sorting at the site of consumption.
• Following its European success, the program has been rolled out in Australia in 2019 and in the United States in 2020 and tested in New  Zealand between 2019-2021.
• ●A partnership with Govaplast and Plas Eco for the design, manufacture and distribution of “Ubicuity™, the ‘write’ kind of bench™” furniture. Used pens are collected, sorted and shredded by a recycler. The plastic is shipped to Govaplast, which converts it into recycled plastic boards. The boards are in turn used by Plas Eco, which designs, manufactures, distributes and markets the products in the Ubicuity™ line.
• Made entirely from recycled plastic, these products are themselves recyclable, resistant to rot, ultraviolet radiation and graffiti as well as very durable (guaranteed 10 years). Long-lasting and easy to maintain they are in keeping with the Values of BIC® products. They also have a smaller environmental footprint than outdoor furniture made from farmed wood.

BIC hopes that this product line and the circular economy channel that spawned it will grow rapidly in the coming years, as exemplified by the program’s extension to other geographies in recent years.

In 2021, BIC has expanded its partnership with TerraCycle® launching its first free razor recycling program in Spain. BIC and TerraCycle®  collects razors across the country and recycle them into soap holders or other toiletries to support the development of the circular economy. The Spanish program accepts all disposable razors regardless of brand or type and provides a map of collection points on the TerraCycle® website. Once collected, the razor pieces will be separated and recycled into raw materials and manufactured into new products, helping manufacturers avoid the use of excess virgin raw materials.

In 2022, the TerraCycle® French program experienced a significant acceleration in the number of collection points for used goods (400 additional terminals were installed compared to 2021) thanks, in particular: 

• ●the renewal of the recycling operation for used writing instruments during the Back-to-school season at the main retail chains: Carrefour, Leclerc, Auchan;
• ●an acceleration in local networks, allowing collection throughout the year at Cultura, Bureau Vallée, & Furet du Nord(20).

For more than four years the Flame for Life division has been testing several collection and recycling loops. The goal is to understand consumer behavior with regard to collection and recycling. In 2021, collection and recycling loops were implemented in the Balearic Islands, in response to local authorities’ requirements. BIC has leveraged the  new regulation in 2021 urging manufacturers to collect every product sold on the market. This allows for a full-scale observation of one possible collection model. BIC has in parallel designed several different models to test many options as well as better understand consumer behaviors when they retourntheir used lighters. This has been done in partnership with local consumer association Consubal on the Balearic Islands and UQAM specialized laboratory (Responsible consumption). Consubal has been helping BIC with communicating and promoting the collection of lighters in the Balearic Islands. In the meantime, Plastic@Sea has been studying - in real life - plastic flows in the region to quantify the presence of plastics and understand where they come from, because of what conditions and other plastic pollution factors. By closely studying both lighter collection parameters, consumers' behaviors and real lighters flows, BIC intends to develop and test the most efficient way to drive effective collection loopsand expand them at a much larger scale.

Over the past years BIC has joined forces with key players to facilitate its shift toward the circular economy:

• ●in 2019, BIC signed up to the Circular Economy 100 initiative by the Ellen MacArthur Foundation. Its various programs will enable BIC’s teams to expand their knowledge and skills while networking and collaborating with key organizations on the circular economy;
• ●in 2020, BIC also joined the Plug & Play network, the world’s largest innovation ecosystem. This gives the Group easy access to the right partners and best startups to speed up R&D on new pertinent solutions and sustainable products that meet the ever-changing needs of consumers;
• ●with its partners TerraCycle®, Govaplast and Plas Eco, BIC is driving an innovative new channel to promote the circular economy, exploring plastic recycling techniques to pioneer and investigate possibilities further;
• ●since 2019, the BIC Lighters division has supported the Tara Ocean Foundation. Its oceanographic research vessel sails the world’s oceans, bringing scientists together in an effort to understand the dynamics of plastic breakdown at sea. This research program also documents the impact of plastic waste on the oceans, with the long-term goal of identifying substitute materials;
• ●BIC has joined Bio-speed, a consortium looking to accelerate the emergence of a biomass economy. It brings together a number of groups, including Danone, Faurecia, Lego, Michelin and L’Oréal. Its goal is to reduce fossil fuel dependency and the environmental footprint of manufactured products by promoting the conversion of non-food biomass into polymers;
• ●in the research of alternative materials, BIC has developed over 100 strategic R&D partnerships with startups, cutting-edge companies, universities, research institutes and external laboratories over the past years;

• ●in 2021, BIC teamed up with the supplier Avient to incorporate their reSound™ recycled-content thermoplastic elastomer in BIC Soleil® Click 5 handle. This material utilizes 62% recycled content and when combined with the razor handle it reached over 40% recycled content in total. A consumer launch was held in  2022;
• ●in 2022, BIC joined the ABSolEU project alongside research and industrial actors. The projects’ purpose is to improve the knowledge on ABS(21) plastic recycling and pave the way for an ABS recycling revolution in the European Union.

BIC is making responsible innovation and the improvement of the environmental and societal footprint of products an integral part of everyday activities. To support this objective, the Group has developed a tool for evaluating its products: EMA (Environmentally & socially Measurable Advantage) Scorecard.

EMA uses eight criteria (service life, product weight, environmental impact of materials, the use of recycled and/or alternative materials, the materials’ recyclability, etc.). Designed in keeping with the principles of the circular economy, EMA reflects the “4 Rs” philosophy while taking into account other environmental aspects (responsible chemistry, green chemistry, efficient manufacturing) and social considerations (benefits for society, affordability, etc.).

The goal is to stimulate and facilitate sustainable innovation by adopting an objective, scientific approach to design. Directly connected to the existing tools used for eco-design (Pulse LCA and SimaPro), EMA brings together all the R&D work around product improvement. The criteria defined for EMA are applied to all products (both new and updated existing products) and integrated into the innovation process.

In 2021, EMA has been fully integrated into the development processes for stationery products, lighters and shavers and the teams have been informed and trained on the use of EMA. EMA is systematically presented to new Group insights and innovation employees during their on-boarding into the BIC as well.

The requirement for a product launch is that its environmental or societal performance must be improved compared to its basic design. To achieve this, improvement plans are deployed in the three BIC® product categories. These are mostly based on the integration of recycled or alternative raw materials into the design. A 100% of the new products manufactured by BIC are subject to environmental and societal measurement thanks to the systematic usage of EMA.

A version of the EMA for packaging has been tested in 2021. In 2022 this distinct version of EMA which relies on the same criteria as the product tool but is presented as a document, is employed to have a complete performance of the final product alongside the packaging, thus supporting the day-to-day decision-making of packaging by the development teams.

By the end-2022, three BIC® products have been improved compared to their baseline version. The decrease in 2022 is due to a reduction in the Blade Excellence and Human Expression innovations programs, compounded with a lower-than-expected societal performance of the Blade Excellence products. 

In 2023, BIC will work to update EMA’s methodology by reinforcing current criteria, integrating new criteria and adding specific GHG emissions indicators.

In 2022 the use of non-virgin plastic was of 5.70%. This increase is due to the Blade Excellence programs to boost the use of recycled materials in their products. 

Packaging is needed at various stages of BIC® product life cycles: for their protection, shipping, storage and sale, and for promotional support. BIC’s packaging primarily consists of boxes and cases made of plastic, paper and cardboard. This packaging has an environmental impact during its manufacturing, shipping and at end of life.