Group presentation, Outlook, and strategy

1.1.History

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• 2020

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• 2022

• 2023

1.2.Key figures

1.2.1Key financial figures

Net sales

(in million euros)

2024 net sales by division

(in %)

Earnings Before Interest and Taxes (EBIT)

(in million euros)

Adjusted Earnings Before Interest and Taxes (aDJUSTED EBIT)

(in million euros)

2024 EBIT by division 

(in million euros)(1)

2024 Adjusted EBIT BY DIVISION

(in million euros) (2)

EBIT margin

(% of net sales)

Adjusted EBIT margin

(% of Net Sales)

Net income group share

(in million euros)

Group Earnings per share and adjusted Group Earnings 
per share

(in euros)

Sales volume trends

Production volume trends

Net sales by region

Main income statement information

Key balance sheet aggregates

Condensed cash flow statement

1.2.2Key non-financial figures

Share of renewable Electricity

(as % of total consumption)(3)

Share of Strategic suppliers integrated in the responsible purchasing program

Share of Reusable, recyclable or compostable plastic in packaging

SHARE OF BIC sites HAVING REACHED A zero LOST-TIME incidenT LEVEL

1.3.Strategy and objectives

For 80 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, drove the Group's transformation from a manufacturing and distribution-led company into a consumer-centric one.

1.3.1BIC Horizon Strategic Plan

BIC’s Horizon strategy was launched in November 2020 to spur an in-depth transformation of BIC’s business and create the innovative products and services of tomorrow with more focus on consumer needs and sustainability. The goal was not only to amplify its 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 towards more creativity and focus on value-added  segments while optimizing its product portfolio;
• 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;
• 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 B2B business –  BIC Blade-Tech – which offers high quality shaving solutions to other brands.

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

During 2024, the Group continued to roll out its 2025 Horizon strategic ambitions:

• in December, BIC acquired Tangle Teezer a market-leading, premium detangling haircare company, supporting BIC’s Horizon strategy by gaining exposure to a scaled, fast-growing and profitable business with meaningful upside potential. As part of BIC, Tangle Teezer is well positioned to reach further scale and gain market-leading positions in BIC’s key regions. Tangle Teezer’s expertly designed products, combined with BIC’s unique commercial and supply chain capabilities will continue to drive long-term profitable growth.
• BIC continued to focus on Revenue Growth Management by streamlining the Group’s portfolio to better meet consumer needs and optimize product mix. In 2024, this resulted in an 11% reduction in SKUs, leading to a total of 40% SKU reduction since 2019. BIC also continued to improve its net sales per SKU ratio by 15% in 2024. It almost doubled since 2019, with newly created products positively contributing.
• BIC pursued its strong commercial execution through the launch of impactful advertising campaigns which yielded tremendous results. In the US and Europe, BIC continued its long-lasting partnership with Snoop Dogg and Martha Stewart to promote its iconic utility pocket lighter EZ Reach™. In Human Expression, BIC launched several campaigns during the Back-to-School season such as “Go Make WOW” for BIC® Kids in Europe, and a 4-Color campaign “A pen for every side of you” featuring Charlie Puth in the US. In Blade Excellence, BIC partnered in Brazil with famous TV personality Lo Bosworth for the digital campaign “Tickle your senses”, promoting the new added-value Soleil Escape female shaver.
• eCommerce was a key growth driver with core ecommerce sales increasing double digits at constant currency. This growth was fueled by all three divisions in key regions, particularly North America, Europe and Latin America. Best-performing products online included the mechanical pencil in the US, the iconic 4-Color pen and the added-value Flex 5 Hybrid shaver in Europe.

1.3.22025 Financial outlook(4)

In line with BIC’s Horizon Plan mid-single digit growth trajectory, net sales are expected to grow between 4% and 6% at constant currency in 2025.

Adjusted EBIT margin is expected to be at the same level as 2024, at 15.6%, above BIC’s Horizon target.

Free Cash Flow is expected to be above €240 million.

1.3.32025 Market trends assumptions

Market trends (in value)(5)

• Europe:
  • Mid to high-single digit decrease in Stationery market,
  • Low to mid-single digit increase in Lighter market,
  • Flat to Low single digit decrease in Shavers market;
• U.S.:
  • Mid to high-single digit decrease in Stationery market,
  • Low to mid-single digit decrease in pocket Lighter market,
  • Low to mid-single digit decrease in Shavers market;
• Latin America:
  • Low to mid-single digit increase in Stationery market,
  • Mid to high-single digit increase in Lighter market,
  • Mid to high-single digit increase in Shavers market;
• India:
  • Mid to high-single-digit increase in Stationery market.

Currency: 2025 EUR/USD average hedging rate: 1.10

1.3.4Long-term ambition

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. To achieve this, the Group has embraced a 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.

1.3.5Risks and opportunities

We foresee the following major challenges in 2025:

• ongoing economic uncertainty due to the global geopolitical environment, including US tariffs;
• 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. 

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.

1.3.6Performance goals

The Group's key performance indicators are: sales growth at consant currency, market share gains, adjusted earnings before interests and taxes (EBIT), free cash flow generation and maintaining  a strong balance sheet.

1.3.7Recent events

On December 11th, 2024, the Board of Directors and CEO Gonzalve Bich announced that they will begin a transition process intended to close out Gonzalve Bich’s tenure and appoint a new CEO by September 30th, 2025. 

Tangle Teezer (acquired by BIC in December 2024)  is consolidated in BIC's Balance sheet from December 31, 2024 and in financial P&L from January 1st, 2025. 

There has been no other significant change in the financial position of Société BIC and its subsidiaries as a whole since December 31, 2024.

The Board of Directors of Société BIC, in its meeting of February 18, 2025, acknowledged the wish of Maëlys Castella, whose term of office as Director is expiring in May 2025, not to seek reelection. On the recommendation of the Nominations, Governance and CSR Committee, the Board of Directors unanimously decided to propose the appointment of Esther Gaide as an Independent Director at the next Shareholders Meeting to be held on May 20, 2025. 

1.4.Business presentation

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 companies, with products sold in more than 160 countries.

1.4.1Business presentation by division

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.

1.4.1.1Human Expression – Stationery

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

Human Expression encompasses Writing Instruments and Coloring, Creative Expression which includes Arts and Crafts, Skin Creative and Digital Writing. 

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, simplicity and joy.

To name a few in the last three years, BIC launched BIC® Break-Resistant, a mechanical pencil with lead that is 75% stronger than the leading U.S. competitor, a BIC® Ecolutions Gel Pen made of 78% ocean-bound plastic or a new coloring range called Intensity. 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 (10-14 days), and Tattly®, a U.S. startup innovating in the field of high-quality temporary decals (2-4 days), which diversifies 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 strengthens BIC’s R&D capabilities in Digital Expression.

In 2024, 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.

Breakdown of the Human Expression market size per segment IN 2023

BIC’s markets and positioning

Core Writing & Coloring Instruments Market

BIC’s historical market Writing and Coloring Instruments amounted to 20.2 billion(6) euros in 2023. The Category is expected to grow at around 5.8% CAGR 2023-2027(7) driven by the rising demand from developing countries such as Mexico and Brazil. In parallel, innovation and premiumization will fuel growth in developed countries. The market is mainly fragmented among top players such as BIC, Newell Brands, Pilot and local family-owned groups. In 2023, BIC maintained its #2 global manufacturer position with circa 9% market share, benefiting from strong positions in both developed and developing markets.

Over the years, BIC strengthened its presence in Writing Instruments and Coloring’s markets through innovative launches enabling market share gains in key countries, whether it be in core writing instruments or in added-value segments. In 2024, BIC notably gained share in Writing Instruments in developed markets such as France, Mexico and Middle East and Africa.

Breakdown of the Writing Instruments market

(In value – Euromonitor 2023 and BIC estimates)

By region (BIC estimates)

By product segment (BIC estimates)

main market leaders (Euromonitor)

BIC’s market share by segment (bic estimates)

BIC’s Market share by region - 2024

Creative Expression markets

The Arts and Crafts market is a large market experiencing mid-single-digit growth (estimated at 11.6 billion euros in 2023)(8). The market is expected to grow by 4.4% (CAGR 2022 – 2027) attributed to increased 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 including a variety of sub-segments such as Finger-painting, Watercolors, Kits, Crafting Accessories, Modeling Clay and Slime.

The Skin Creative market, estimated at 7.7 billion euros in 2023, includes the permanent tattoos and the “Do it Yourself” Skin Creative segments. The market is expected to grow 1.2% (CAGR 2023-2027) (1). The fast-growing “Do it Yourself” Skin Creative segment includes temporary tattoo markers, temporary decals, henna tattoos and semi-permanent tattoos. 

Digital Expression market

The Digital Writing market was estimated at 6.6 billion euros in 2023 (1). As technology is improving and becoming more affordable, this market should grow by 6.6% CAGR 2022-2027 to weigh above 8.8 billion euros. It encompasses four main sub-segments: digital notebooks, smart pens, slate tablets, and stylus for tablets.

BIC’s Brand Portfolio in Human Expression

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 Tipp-ex®, Wite-Out® 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, 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 Distribution Channels

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

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 and school supply companies 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.

e-Commerce is a central development focus for BIC and the Group has leading positions in Stationery online in key markets such as France, the UK and the US.

1.4.1.2Flame for Life – Lighters

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, with growth powered by trade-ups, personalization and innovation, to respond to changing consumer trends, while focusing more on sustainability.

BIC’s market and positioning

The worldwide pocket lighter market is estimated at 16.5 billion units (€6.6 billion in value) (9).

Breakdown of the global pocket lighter market in 2023

(BIC estimates – in value)

By region

By product segment (excluding Asia)

Market leaders (excluding Asia)

BIC’s leadership position and market shares

BIC is #1 worldwide in branded pocket lighters in value, with almost a 50% share in value in 2023 (excluding Asia) and 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 processes, and a solid distribution network.

BIC® pocket lighter market share in value (excluding Asia)

(BIC estimates - in value)

Safety and quality, key differentiators for BIC

BIC is well-known for providing safe, high quality and compliant lighters to consumers worldwide. A lighter is a plastic reservoir filled with pressurized gas 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 to 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 European Union member states (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).

All too often, low-cost lighters 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.

Towards a more value-driven model through trade-up and innovation

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 BIC® EZ Reach™, BIC’s first pocket Utility lighter, in the US in July 2020. The EZ Reach™ lighter was also launched into most major markets in Europe and Latin America;
• the launch of the BIC® EZ Load Lighter, BIC’s first-ever reloadable lighter, which can light up to 15,000 flames; 
• the deployment of Revenue Growth Management strategy to drive efficiency in promotional and pricing activities.

In 2024, added-value lighters, including BIC® EZ Reach™, Djeep®, utility and decorated lighters, represented 36% of BIC’s total Lighter Net Sales.

BIC lighter brand portfolio

Addressing all lighting occasions including non-related to tobacco flame usages

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. In recent years, BIC 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 – October 2021). These lighting occasions represent a growth opportunity for BIC, well-positioned to answer the usages non-related to tobacco thanks to the strength of its brand.

Total Flame Devices – Share of Lighting Occasion

Detailed breakdown of flame occasions in the U.S. and Brazil 

U.S.

Brazil

BIC’s Distribution Channels

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. 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 has strong positions driven by full-distribution based on efficient routes-to-market, and relevant customer and consumer programs driving value to the business: BIC offers a large range of decorated lighters as well as bringing new products to market such as BIC® EZ Reach™, addressing everyday needs while generating impulse instore purchases.

In the mass-market channel, BIC focuses on relentless store visibility based on a multi-location presence in store: at the check-out but also throughout affinity aisles such as candle and barbecue.

In e-commerce, in 2024, 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 appealing special editions, monochrome sets and brand-new series of lighters.

1.4.1.3Blade Excellence – Shavers

BIC’s Blade Excellence division focuses on reinforcing its one-piece business with consumer-driven and sustainable value-added products and capitalizing on our advanced R&D and manufacturing capabilities through the creation of BIC Blade-Tech, the Group’s B2B business which offers high quality shaving solutions to other brands.

BIC’s markets and positioning

The wet shave market was about 12.8 billion euros in 2023 and accounted for around 49% of the hair removal segment (10) in value. The estimate 2023-2027 CAGR(11) for Total Wet-Shave market is +4.6%.

Global wet shave market

(Euromonitor – 2023 - in value)

By region

By product segment

Market leaders

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 U.S. 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’s market share in the non-refillable shavers segment

BIC is the #3 worldwide player, with almost 7%(12) of the total wet shave segment. In the non-refillable segment (disposable), BIC ranks #2 worldwide with a 24% market share (13). The Group holds leadership positions in Europe where it became #2 in 2024, in the United States and in Latin America.

BIC’s product portfolio aiming for more innovative and sustainable products

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 such as:

• for Men: BIC® Comfort 3®, BIC® Flex range, and BIC® Flex Hybrid (refillable) range;
• for Women: Miss Soleil, BIC® Soleil Escape;

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

• 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.

BIC Blade-Tech

BIC Blade Tech is a B2B business created as part of the Horizon Plan in 2020, aimed at leveraging BIC's leadership position and manufacturing excellence by powering other brands in the personal grooming industry. BIC Blade Tech offers a large variety of customizable products, from components (like cutting-edge blade heads and a diverse range of razor handles) to turnkey services (like packaged finished products). BIC Blade Tech is focused on delivering high-quality, tailored shaving solutions to meet customers' needs. 

Tangle Teezer

In 2024, BIC expanded its presence in the personal grooming industry with the acquisition of Tangle Teezer a market-leading, detangling haircare brand, supporting BIC’s Horizon strategy by gaining exposure to a scaled, fast-growing and profitable business. This acquisition enables BIC to access a promising and large total adressable market of € 4.5 billion euros, growing at an average annual rate of +10%  (Company estimates: CAGR 2023-2027). 

Other products

These 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.

1.4.2Research and innovation

BIC’s R&D organization goals and missions

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 speeding up 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.

In 2024, BIC invested 1.1% of sales in R&D.

Product innovation

In Human Expression, BIC continuously innovates to bring state-of-the-art writing technology to its consumers. Some of the most recent product innovations include:

• Break Resistant mechanical pencils;
• new Intensity coloring packs.

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 such as BIC® Ecolutions Gel made from 78% ocean-bound recycled plastic while the paperboard packaging is made of 100% recycled content and is recyclable.

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. Some of the most recent product innovations include:

• BIC® EZ Load Lighter, BIC’s first-ever reloadable lighter, and the first innovation in the utility category in over 15 years;
• BIC® EZ Reach™, launched in 2023 into most major markets in Europe and in Brazil following its successful launch in North America in 2020;
• BIC® Maxi Ecolutions lighter, a version of the BIC Maxi® lighter using alternative materials: bio-attributed plastic and 55% recycled metals.

In Blade Excellence, some of the most recent innovations include:

• for Men: BIC® Flex 5 and BIC® Hybrid Flex 5;
• for Women: BIC launched the line BIC® Soleil Escape. These razors have 4 flexible blades that individually adjust to the contours of the skin and have long-lasting lavender and eucalyptus scented handles. BIC also 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.

1.4.3Manufacturing footprint

More than 90% of Group Net Sales are generated in BIC's 23 owned factories around the world.

Manufacturing locations

Existing or planned property, plant and equipment (including leased assets)

Risk factors and management

Introduction

BIC maintains a proactive approach to identify, assess, mitigate, monitor and manage key risks that could impact:

• employees, customers, Shareholders’ interests, assets, environment or reputation;
• ability to achieve its targets and strategy;
• ability to stay true to its values; and
• ability to comply with laws and regulations including codes of ethics.

The assessment of the main risks takes into account the control measures implemented to reduce the risk (net or residual risk).

The risk factors set forth below regard matters that could have an adverse effect, potentially material, on our business, financial condition, results of operations and cash flows. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, results of operations and cash flows.

BIC has taken a series of measures to mitigate the risks as described in section 2.2 Description and mitigation of main risk factors and 2.3.4 Insurance – Coverage of risks, and chapter 3.

Additionally, a description of the risk management system can be found in section 2.3. Risk management and internal control procedures implemented by the Company and Insurance.

2.1.Main risks and risk assessment

Geopolitical Landscape

The Group continues to closely monitor and mitigate the impact of geopolitical tensions, wars, and trade tariffs on our people and operations globally. The Group has no industrial presence in Russia and Ukraine. In 2024, Russia and Ukraine accounted for less than 3% total BIC Net Sales.

Currently, BIC has restricted its product range to cover essential shaving, writing, and household items only, such as lighters, and has paused all advertising, promotion, and capital investment in Russia. We will continue to monitor and comply with any new regulatory decisions, such as sanctions, and remain diligent in protecting our team members in the region. BIC maintains complete control of its brand and intellectual property in Russia to counter any potential moves for brand appropriation.

Please refer to risks related to “Supply Chain and Production.”

2.2.Description and mitigation of main risk factors

2.3.Risk Management and Internal Control Procedures implemented by the Company and Insurance

2.3.1Risk Management and Internal Control definitions and objectives

2.3.1.1Adoption of the Principles of the AMF’s Reference Framework for Risk Management and Internal Control Systems

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.

a)Risk management

Risk management encompasses a set of resources, behaviors, procedures and actions that are tailored to the characteristics of the Company and its employees while observing legal requirements.

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, financials, or reputation.

Risk management also helps to:

• maintain and protect the Company’s value, assets and reputation;
• safeguard the Company’s decision-making and processes to achieve its objectives;
• ensure that the Company’s actions are consistent with its values.

b)Internal control

The risk management process also incorporates the definition of company-wide internal controls to ensure that:

• the Company remains in full compliance with evolving laws and regulations, and operates with the highest level of ethical business standards;
• the instructions and guidelines issued by Executive Management are followed;
• the Company’s internal processes remain effective and continuously improve, 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.

BIC’s internal controls are designed to provide reasonable assurance on:

• compliance with all applicable laws and regulations governing the Company and its daily operation;
• ongoing communication and guidance to employees to ensure they understand the full scope of their responsibilities and expected contributions to the Company;
• guidance for operational, industrial, commercial and financial processes;
• producing reliable financial statements(1). The reliability of such information depends on the quality of the associated internal control procedures and system (see reporting procedures section 2.3.2.4 Internal Control procedures) including:
  • the segregation of duties principle, enabling a clear separation between input, operating and retention duties,
  • guidance regarding the identification of the source of the information and materials produced,
  • transactions recorded in accordance with applicable accounting standards.

2.3.1.2Scope of Risk Management and Internal Control

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 2.3.3 Risk Management and Internal Control approach and structure); and
• compliance with laws and regulations.

Supporting principles and systems have been established 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.

2.3.1.3Limitations of Risk Management and Internal Control Systems

Risk management and internal control systems have inherent limitations and cannot provide an absolute guarantee that the Company’s objectives will be met. Despite the control measures we currently have in place, our systems and those of our third-party service providers are subject to the ever-changing risk of compromised security, acts of vandalism, human errors and other unforeseen events.

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

2.3.2Components of risk management and internal control of the Company and its subsidiaries

The effectiveness of risk management and internal control systems depends on their fundamentals and adoption by the Company.

2.3.2.1Control Environment

a)Organization

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.

b)Main Tools and Procedures

Various tools and procedures have been put in place to support this structure and measure its effectiveness. The primary tools shared by all Group entities include:

• Code of Conduct (see section 2.3.3.6 Team Members);
• Group Anti-Corruption Policy (see section 2.3.3.6 Team Members);
• Group Vision and Values (see section 2.3.3.6 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 2.3.3.6 Team Members);
• Human Resources Management Policies:
  • see section 3.1.7 Own Workforce
  • Human Resources Management plays a key 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;
• 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 2.3.2.4 Internal Control Procedures).

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

2.3.2.2Dissemination of relevant and reliable information

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 tools used to accomplish this 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 support the Company’s overall internal control system and help with decision-making and follow-up for the achievement of Management’s objectives.

2.3.2.3Risk Management Process

One of the goals of risk management is to address key existing, new, evolving and emerging risks that may significantly impact the Company by leveraging a variety of internal and external mitigation processes and/or external insurance protection.

The Group Risk Management Department consists of Enterprise Risk Management (ERM), Insurance Risk Management and Risk Advisory teams.

BIC’s ERM is based on industry standard risk management principles from the Autorité des Marchés Financiers (AMF), the International Organization for Standardization (“ISO”), the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).

BIC’s ERM approach consists of five steps: risk identification, risk assessment, risk mitigation, risk monitoring and risk management. This approach has been memorialized into the Group ERM Policy which outlines the risk management program and supporting processes under Enterprise Risk Management. This policy views risk management as an integrated business process essential to the overall sustainability and success of the business and it applies to all divisions and subsidiaries of BIC.

1.Risk Identification

Risk identification establishes the exposure of the Company to risk and uncertainty. The process highlights the main risks arising from both external and internal sources. All risks are categorized into a standard hierarchy based on common root causes that begin with four primary risk categories (Strategic, Regulatory, Financial, and Operating). The risk register contains risk types and respective statements.

The ERM team conducts an annual global risk mapping exercise, challenging the answers received when necessary. 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 under the risk register.

In addition to the annual risk mapping assessment led by Enterprise Risk Management team, in 2023, two legally required risk mapping exercises have also been conducted. They include the required anti-corruption risk mapping under the French law 2016-1691 of December 9, 2016, also known as the Sapin II Law, as well as the duty of risk monitoring obligation required under French law 2017-399 of March 27, 2017, also known as the Duty of Vigilance. Identified risks proceed to the next step in our risk management process.

2.Risk Assessment

Once a risk is identified, its profile is assessed to develop a common understanding of the top drivers and evaluate potential scenarios. A standardized risk assessment methodology is applied to define the Risk Rating, Risk Mitigation Effectiveness, Course of Action, Risk Outlook and Velocity.

The risk assessment process helps to prioritize risks. Prioritized risks then proceed to the next step.

3.Risk Mitigation

Under the ERM framework, risk owners are assigned. This individual oversees the development and execution of an aligned mitigation plan which includes an overview of the risk, most likely scenario, specific mitigation plans (short and long term), and progress against initiatives. Since these risks have the potential to impact our ability to deliver our strategic plans, mitigation plans are embedded into the Company’s planning processes and risk owners’ objectives as appropriate.

To document and track progress against mitigation plans, we use identified Key Performance Indicators (KPIs).

The Executive Committee manages the major risks identified in BIC’s risk mapping. All other risks identified are managed by their respective entity following the ERM framework. Group Risk Management reviews risk mitigation actions and partners with the organization to enhance them as appropriate.

In addition, there are a series of procedures (see section 2.3.2.4 Internal Control Procedures). The Executive Committee, Group Functions, and Management monitor risks across the organization on an ongoing basis, including:

• Group Treasury monitors interest rate exposure and foreign exchange exposure daily along with liquidity risk;
• Legal,  Product Safety and Regulatory Affairs Departments monitor changes to laws and regulations and ongoing litigation;
• Management and the Sustainable Development Department monitors industrial, environmental, social and governance risks;
• Commercial organization monitors market and consumer trends;
• The Executive Committee monitors significant strategic and operational risks.

An annual review of the Insurance coverage process also takes place: see Group Presentation – section 2.3.4 Insurance – Coverage of risks.

4.Risk Monitoring

Once mitigation plans are aligned, ERM team governs the process with the risk owners to review the effectiveness of risk actions and adjust as necessary. Standardized risk templates are leveraged to help guide these discussions, providing summary information by risk. The cadence and level of these reviews varies based on the type and magnitude of the risk.

Executive Risk Owners lead the discussions for the major risks with the Executive Committee supported by the ERM team. The ERM team debriefs the Audit Committee and Board of Directors on major risks at least once a year, post Executive Committee Risk Reviews.

Locally identified risks are reported to the ERM team annually and reviewed by the local leadership team prior to submission.

5.Risk Management

Risks impact and mitigation plans are embedded in core processes as appropriate such as Strategic Planning Process, Capital Planning, Core Operating Processes, Vigilance Plan, Project Management, etc. The prioritization of investments due to risk exposure and the need to improve risk mitigation efforts is another example of how the organization embeds risk management into core processes.

2.3.2.4Internal Control Procedures

a)Internal Control Procedures Related to the Preparation of Accounting and Financial Information Published by the Company

The accounting and financial information are prepared in compliance with the IFRS (International Financial Reporting Standards) as adopted by the European Union, for both internal and external reporting.

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.

Finance teams in each subsidiary report accounting and financial information to the business unit finance teams and then to the Group.

Local External Auditors audit the IFRS package (country financial statements) 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 is observed by 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 is updated or enhanced, the information is communicated and posted on BIC’s intranet and is also cascaded down to all subsidiaries by the Executive Committee or the Policy owner

The reporting procedures within the Group are as follows:

• a Group financial information system is used to consolidate statutory and management reporting within the same reporting parameters;
• a detailed sales reporting system is also leveraged. 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 parameters;
• 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;
• financial performance analysis is performed to compare actuals, budget, forecasts, strategic plan and is reviewed by the Executive Committee;
• the Group Chief Financial Officer validates the consolidated financial information. Significant variances are reviewed with the Chief Executive Officer;
• the Audit Committee reviews and validates this information and provides the Board of Directors with a report, if necessary;
• External Auditors are involved in the annual validation of the financial information production process.

The account closing process includes the following:

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

b)Other Internal Control Procedures

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

However, as a global framework, the Group Controllers Manual, which includes the Global Risk and Control Matrix, provides general guidelines for internal controls.

The Group’s main procedures are described below.

Purchasing and Capital Investment Procedures

Any commitment to purchase capital investments and goods and services is subject to proper authorization. Authorization drives all other steps in the process, from acknowledgment of receipt of the purchased goods or service to payment of vendors.

The Group has 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.

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 purpose 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 approve the purchase. Prior to any investment, proper documentation is required. It contains all necessary information such as description and return on investment, approvals to reflect the level of commitment. Once implemented, approved capital expenditures are reviewed to ensure alignment with original business case financial targets.

In terms of organization, procurement is segregated from the purchasing function. The goal is to mitigate any risk of overlapping responsibilities. This process also centralizes the procurement flows for strategic materials at the Group level. 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.

Selling Procedures

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

These common principles mainly address:

• 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;
• timing recognition with an emphasis on cut-off processes and adjustment procedures;
• the fair value of trade receivables with procedures for bad debt reserves and credit note issuance.

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

Inventory Management Procedures

Inventory Management procedures cover physical possession of goods and their valuation plus monitoring of related flows.

In terms of physical possession, Group policies are provided on top of local regulations. They address:

• 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, BIC’s costing procedure provides local controllers with Group guidelines and includes local accounting and financial standards.

Cash Management Procedures

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

• cash balance and payment management including physical protections, bank reconciliation performance and 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. All positions are monitored on a daily basis and are fully marked-to-market at each monthly closing in accordance with the International Financial Reporting Standards (IFRS).

Fixed Asset Management Procedures

Asset security is a top internal control priority with relevant procedures in place within the Group.

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

In addition to the 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.

2.3.2.5Control 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 provides assurance through its annual audit plan that there is no material discrepancy within 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.

2.3.3Risk Management and Internal Control approach and structure

2.3.3.1The Board of Directors

The Board of Directors of Société BIC, always acts in the Company’s interests and is responsible for monitoring its performance. The Board works with the Chief Executive Officer to build a vision and a set of expectations and guidelines. It must also review and approve the Company’s strategic objectives.

2.3.3.2The Executive Committee

The BIC Executive Committee consists of leaders who meet regularly and work closely with Gonzalve Bich, Chief Executive Officer, to oversee the implementation of strategic objectives approved by the Board of Directors. (see section 4.1.1.4 Executive Committee as of the date of this Universal Registration Document).

Including Gonzalve Bich, the Executive Committee consists of(2):

• David Cabero: Group Category Leader, Stationery;
• François Clément-Grandcourt: Group Lighter General Manager;
• Gary Horsfield: Group Supply Chain Officer and Group Category Leader, Blade Excellence;
• Sara LaPorta: Global Strategy and Business Development Officer;
• Alexandra Malak: Chief People and Workplace Officer;
• Jonathan Skyrme: General Manager, Skin Creative;
• Chad Spooner: Chief Financial Officer;
• Chester Twigg: Group Commercial Officer;
• Esther Wick: Group General Counsel.

The Group Supply Chain Officer is responsible for Manufacturing, New Product Research and Development, 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 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 target achievement and gain insights into current marketplace dynamics. A three-year strategic planning process is in place to help identify future growth opportunities.

2.3.3.3The Audit Committee

The Audit Committee (see section 4.1.4.3 Committees of the Board of Directors), as part of its remit to support the CEO, regularly monitors the risk management and internal control systems. The Committee holds reviews with the Internal Control and Audit Director and Group Risk Management Director for updates on the work done during the year and gives its opinion on the department’s organization. A summary of internal audit findings, Insurance and ERM programs are shared with the Committee annually.

2.3.3.4The Internal Audit & Advisory (IA&A) Department

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

This department performs financial, operational and compliance audits and provides an independent assessment regarding the level of compliance with the Group’s policies, and key controls. The IA&A Department focuses on:

• business cycle and process reviews(3) at both the subsidiary and Corporate level;
• testing of existing controls to ensure design and operating 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 IA&A Department also:

• assists with timely and specific advisory engagements, such as process improvements, policy and system implementations, etc.;
• provides assistance in fraud prevention, awareness and performs investigations into suspected 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 audit findings.

a) The IA&A Department’s Work in 2024

A multi-year audit rotation schedule is in place to ensure that all major sites and key processes are reviewed every five years, on average. The 2024 schedule saw the IA&A Department perform 10 audits in manufacturing and distribution entities, combining initial and follow-up visits and investigations.

These risk-based audits were conducted in line with the methodology and procedures established by the IA&A Department, including:

• performance of documented tests and procedures, including inquiry, inspection, examination, re-calculation, and analytical procedures;
• the issuance of a comprehensive audit report, listing recommended improvements, with clear action plans and deadlines. The IA&A report plays an important role in the ongoing improvement of controls within the Group.

No significant issues were identified from these audits, however, findings highlighted necessary improvements to increase the effectiveness of select controls. Local Management has shared its response to these recommendations and proposed action plans, together with the related remediation dates and the control owner who is responsible for their implementation.

IA&A regularly follows up on these action plans through its Issue Management Process to ensure timely remediation. The follow-up process includes an automated workflow which allows for efficient monitoring of progress on recommendations on key audit matters. Finally, the best internal control practices identified during these reviews are shared within the Group.

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

A summary of the work done by the IA&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.

b)Outlook and Action Plan for 2025

The IA&A Department will continue to focus on:

• financial audits to ensure the appropriateness of the financial statements;
• process and efficiency improvements;
• testing of the design and operational effectiveness of key controls; and
• reviews to ensure compliance with applicable key regulations.

The risk based annual audit schedule, prepared by the IA&A Department is reviewed by the Chief Financial Officer, approved by the Audit Committee, and satisfies the multi-year rotation principle for site and process reviews.

2.3.3.5The Risk Management Department

The Group Risk Management Department reports to the Chief Financial Officer. Its mission is to deliver strong risk capabilities to protect the Company and its assets. 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 to strengthen the Company’s ability to achieve its strategic objectives.

Insurance Risk Management is the practice of identifying and analyzing loss exposures to minimize the potential financial impact 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, Commercial and Operations Organizations.

2.3.3.6Team members

All team members are involved in internal control processes and risk management activities in line with their respective scope of work. They have access to information used to design, operate and monitor the internal control system. Company’s policies are posted on the intranet site in addition to the Global Risk and Control matrix, and the Speak Up line (refer to section 3.2 Vigilance Plan).

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

The Company performs an anonymous pulse survey and engagement survey annually to measure multiple aspects of engagement. Team member sentiment is gathered and consolidated in a best-in-class survey tool containing benchmark information. Results are analyzed by the various leadership teams around the globe and then communicated to all participating team members. In partnership with our team members, we develop action plans to address key areas of opportunity and measure progress against those actions throughout the year. In the latest survey run in 2024, we achieved an outstanding 93% response rate. Employee engagement was favorably assessed at 80%, a 1-point increase (+1) versus 2023 results and 6 points above comparable peers average. This improvement reflects our continued commitment to an engaging, inclusive, and productive workplace. Amongst the key drivers, the majority of our team members feel that they are treated with respect at work and are proud to work for BIC.

2.3.4Insurance – coverage of risks

BIC adopts Insurance Risk Management as the practice of identifying and analyzing loss exposures, then minimizing their financial impact via risk transfer.

Group Risk Management is responsible for BIC Insurance Program which is presented to the Audit Committee of the Board at least once a year. Presentations include program governance, structure, premium, coverage, deductible, claims activity, market trends, and other relevant topics about the BIC Insurance Program.

Group Risk Management leverages risk appetite, benchmark analysis, risk financing optimization studies, and actuarial analysis to ensure risk transfer strategies are appropriate.

2.3.4.1Insurance

BIC has a comprehensive insurance program which is used as a risk financing solution to transfer major risks to the insurance marketplace. The Group’s insurance program provides a uniformly high level of risk management and insurance protection for all BIC operating entities. It helps to protect assets and revenue from risks that are insurable or controllable.

Group Risk Management acquires insurance on two tiers:

• the Global Insurance Program addresses all Group affiliated companies, except due to legal or business constraints; and
• locally placed policies address compulsory insurance where required. Some local affiliated companies as well as recently acquired companies may also choose to obtain or keep additional insurance for special and/or specific needs.

BIC purchases insurance policies from reputable insurers through broker partners.

BIC 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;
• Other types of insurance in line with legal requirements in the countries in which it operates.

As a general standard, coverage is based on 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.

The overall cost of Group insurance programs with third-party insurers was estimated to be around 8.4 million euros in 2024.

2.3.4.2Self-Insurance

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

Additionally, BIC is self-insured through its captive, SLS Insurance Company (SLS), for specific risks faced by its operations in the United States (U.S.). These include:

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

Group Risk Management acts as SLS Captive Manager and is responsible for its internal governance process including the coordination of premium and policy decisions with Senior Management, and the review of investments strategies, claims activity and financial performance with internal business partners.

SLS Board of Directors meets at least annually to review financial and operational performance, in addition to underwriting and claims reports. An independent firm performs SLS financial statements audits in accordance with Generally Accepted Auditing Standard (GAAS) in the U.S. Audits are performed annually and have had effective passing results to date.

The other Group entities are insured under the traditional insurance program.

Corporate Social Responsibility and Performance

As required by the Corporate Sustainability Reporting Directive (“CSRD”), BIC’s 2024 Sustainability Statement complies with the European Sustainability Reporting Standards (“ESRS”).

Chapter 3 complies with the following applicable regulations:

• Sustainability Statement as per the CSRD and its transposition into French law through Ordinance n° 2023-1142 of December 6, 2023. This section includes information on sustainability matters that are material for BIC based on the double materiality assessment (DMA, see section  3.1.1.4) carried out in 2024;
• Vigilance Plan as per the requirements set out in French law No. 2017-399 of March 17, 2017 on the duty of vigilance of parent companies (“Vigilance Law”) and with Article L. 225-102-4 of the French Commercial Code. This section contains information on the Group’s Vigilance Plan, including the necessary measures to identify and prevent risks relating to severe human rights and fundamental freedoms infringements, health and safety hazards, and environmental damage.

As required by Ordinance n° 2023-1142 of December 6, 2023 and Article L. 2312-17 of the French Labour Code, the Work Council will be informed and consulted on the Sustainability Statement in 2025.

3.1Sustainability Statement

3.1.1General information (ESRS 2)

3.1.1.1General disclosures

3.1.1.1.1General basis for preparation of the Sustainability Statement (BP-1)

Scope of consolidation

The scope of consolidation of this Sustainability Statement is the same as the one for financial statements (see section  6.1. for more details), i.e. all the consolidated entities as of December 31, 2024 in accordance with Article L. 233‑16 of the French Commercial Code, apart from the exemptions stated in the table below.

Tangle Teezer, a premium detangling haircare company, acquired by BIC on December 11, 2024, is not included in the reporting scope.

Some indicators have their own perimeter. Specific perimeters for indicators are systematically mentioned to make reading easier and ensure data understanding. Themes where specificities occur are presented in the table below.

Value chain coverage

The Sustainability Statement includes important information regarding BIC’s upstream (e.g., BIC Tier 1 Strategic Suppliers(1)) and downstream (e.g., customers and end-users) value chain, that have been identified during the double materiality assessment (DMA – see section  3.1.1.4). BIC has focused its assessment work on:

• value chain entities associated with hotspots that present real or potential impacts on people and/or the environment; and
• entities presenting key dependencies on natural, human and social resources regarding its products and/or services, generating risks and opportunities for the Group.

Omission of specific pieces of information

The Group has not used the option to omit specific pieces of information corresponding to intellectual property, know-how or the results of innovation.

The Group has used the option to omit the absolute weight of inputs (see section  3.1.6.2.2) because this information is considered as sensitive information. The overall relevance of the disclosure regarding inputs is not impaired.

3.1.1.1.2Disclosures in relation to specific circumstances (BP-2)

Time horizons

The reference period for this Sustainability Statement corresponds to the calendar year 2024. Some data contained in the report are also measured in comparison to a reference year, which is systematically presented.

The time horizons used for the DMA are as follows:

• short term: reporting period of 1 year;
• medium term: less than 5 years; and
• long term: over 5 years.

Value chain estimation

To produce the GHG inventory, BIC uses activity-based sources. However, for the following upstream and downstream value chain data, BIC estimates using financial sources:

• Purchased services
• Capital goods

The emission factors used to build the GHG inventories are updated every year and approved through the GHG inventory tool used by BIC.

Sources of estimation and outcome uncertainty

The data presented in this report is derived from activity-specific information, utilizing the most accurate databases available.

Changes in preparation or presentation of sustainability information

No significant changes were made in the preparation or presentation of sustainability information, except that the scope of environmental metrics—covering carbon, pollution, water, and waste—now includes administrative and commercial entities. This adjustment is reflected in the dedicated sections to ensure data clarity.

Changes to the preparation and presentation of HR information have been made to align with new CSRD reporting requirements, for example calculation of certain metrics for the whole BIC headcount (rather than as previously for permanent employees only). Where comparisons are made to previous year data, explanations are provided in the dedicated sections below on whether data is comparable or if prior year data shown has been recalculated.

Reporting errors in prior periods

Due to errors in the 2023 production data, certain environmental data from 2023 has been corrected. Detailed explanations are provided in the dedicated sections below.

The number of lost-time incidents for 2023 has been updated from 36 to 38, following the classification of two additional incidents as lost-time incidents by authorities after the conclusion of the audit. The 2023 incident rate was adjusted accordingly.

Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements

BIC reports information stemming from Global Reporting Initiative (GRI) (2) standards which are listed in the corresponding table that is made available on our website on this page: Sustainability report | BIC Investors.

Through its strategy “Writing the Future, Together,” the Group has made commitments aligned with some Sustainable Development Goals (SDG) (3). The table below presents the corresponding sections in the Chapter.

Incorporation by reference

In order to limit redundancy, certain data is incorporated by reference in this Sustainability Statement.

The table below lists the incorporations by reference in this Chapter:

3.1.1.2Governance

3.1.1.2.1Role of the administrative, management and supervisory bodies (GOV-1)

Composition and diversity of the members of BIC’s administrative, management and supervisory bodies

The Board of Directors

As of December 31, 2024, the Board of Directors is composed of 12 members, including one executive member, Gonzalve Bich, Director and CEO, and 11 non-executive members. More details are presented in section  4.1.2. Their competencies, in particular the ones related to sustainability matters, are detailed in section  4.1.3.3. Their diversity representation as well as the Board’s gender diversity ratio are presented in section  4.1.2.3.

The two Directors representing employees are presented in section  4.1.2.6. 

The Board of Directors is comprised of five Independent Directors (see section  4.1.2.5), their proportion within the various Committees of the Board is presented in section  4.1.4.3.

The Executive Committee

The Executive Committee is composed of 10 members(4), all of whom, except for the CEO, are employees of BIC Group. More details on their profiles and roles are presented in section  4.1.1.4.

Roles and responsibilities of BIC’s administrative, management and supervisory bodies

The sustainability strategy – informed by the material impacts, risks and opportunities (IROs) – is defined by BIC’s Sustainable Development Department. The Executive Committee is responsible for incorporating the global sustainability strategy into the overall business strategy, ensuring and monitoring progress.

The Nominations, Governance and CSR Committee is responsible for overseeing this process and reporting to the Board of Directors. It monitors on a quarterly basis the implementation and progress of the global sustainability strategy and BIC’s compliance to regulation. It advises and issues recommendations to the Board on sustainability responsibilities. The Nominations, Governance and CSR Committee’s members, their expertise, missions, and powers are presented in section  4.1.4.3.

To ensure that the necessary skills and expertise to oversee sustainability matters are available or developed, the Nominations, Governance and CSR Committee have undertaken several initiatives this year.

First, three specific trainings on the Corporate Sustainability Reporting Directive (CSRD) were organized for the Nominations, Governance and CSR Committee:

• a session focusing on the CSRD Auditor role and reporting under financial auditing standards;
• a presentation by a law firm addressing governance aspects related to the CSRD; and
• a training session conducted by a sustainability consulting firm, to deepen Directors’ understanding of the directive’s requirements on strategy and operational matters.

Additionally, Marie-Aimée Bich-Dufour, Director and member of the Nominations, Governance and CSR Committee, attended a training program by the French Institute of Directors (IFA) on the CSRD, further strengthening her individual expertise on the topic.

The Nominations, Governance and CSR Committee has consequently enhanced its collective knowledge in 2024 and plans to continue these efforts in 2025. Additional training sessions will be implemented, including presentations on more operational topics, to further expand its understanding and expertise on sustainability matters.

These initiatives demonstrate the Group’s commitment to equipping its governance bodies with the skills needed to effectively address sustainability-related challenges and opportunities.

BIC’s Sustainable Development Department – led by the Group Sustainability Officer – is working on ensuring proper governance processes, controls and procedures are in place and integrated with other internal functions. The Group Sustainability Officer reports directly to the CEO and also presents on a quarterly basis to the Nominations, Governance and CSR Committee.

In 2024, the Group Sustainability Officer presented four times to the Nominations, Governance and CSR Committee, addressing key topics such as the selection of CSRD auditors in charge of certifying the sustainability-related information, the DMA, and the evolution of performance indicators in the Group’s scorecard (which is updated several times a year).

BIC’s Sustainable Development Program “Writing the Future, Together” is presented in section  3.1.1.3.1.

3.1.1.2.2Information provided to and sustainability matters addressed by administrative, management and supervisory bodies (GOV-2)

As highlighted above, the Group Sustainability Officer reports on a quarterly basis to the Nominations, Governance and CSR Committee who reports in turn to the Board of Directors. The Sustainable Development Department is responsible for defining and monitoring the global sustainability strategy informed by the material IROs and ensuring reporting to the appropriate governance bodies, namely the Executive Committee, the CEO and the Nominations, Governance and CSR Committee.

The full list of material IROs is considered in the overall sustainability strategy’s implementation, while the reporting to the appropriate governance bodies focuses on key material IROs impacting the overall business strategy.

As it is the first year of application of the CSRD, BIC has prioritized the process of DMA, which has been presented and validated by the different governance bodies. The overall governance structure regarding sustainability matters and IROs is therefore expected to be addressed from 2025 onwards.

3.1.1.2.3Integration of sustainability-related performance in incentive schemes (GOV-3)

Two Environmental, Social and Governance (ESG) dimensions are included into incentive systems and remuneration policies for Executive Corporate Officers: climate and employee engagement (see section  4.2.1.1). These incentive systems were approved by 92.18% of the Shareholders at the last Annual General Meeting (see section  4.2.2).

3.1.1.2.4Statement on due diligence (GOV-4)

BIC has reinforced its due diligence and internal control process. In addition, BIC has updated its Vigilance Plan, presented in section  3.2. This plan includes, amongst others, measures to attenuate risks such as due diligence related to third parties and risk mapping.

The table below outlines certain elements of due diligence and the related sections in the Sustainability Statement.

3.1.1.2.5Risk management and internal controls over sustainability reporting (GOV-5)

BIC’s main risks and risk assessment is presented in section  2.1., the description and mitigation of main risk factors is included in section  2.2., and the risk management and internal control procedures and governance are captured by section  2.3. 

The Sustainable Development Department works closely with the various functions within the organization to implement controls at the different stages of the sustainability reporting process.

Environmental KPIs concerning energy, waste, water and refrigerant gases are reported in a reporting tool by Health, Safety & Environment (HSE) managers, with different levels of control and validation in the following order: control by Plant manager, verification by Group HSE team and approval by HSE Directors. They are also reviewed by these different levels during monthly meetings.

A similar process is in place for Human Resources (HR) data, with periodic data quality checks carried out by the Group HR teams and a detailed data collection process.

Regarding the reporting of sustainability information in the Universal Registration Document (URD), the various roles and responsibilities have been defined to ensure the reliability of the data communicated. The information has been subject to various reviews and validations.

3.1.1.3Strategy

3.1.1.3.1Strategy, business model and value chain (SBM-1)

The elements of BIC's strategy that relate to or impact sustainability matters, its business model and its value chain are presented below.

BIC’s business presentation by division (Human Expression, Flame for Life and Blade Excellence) is available in section  1.4.1 and includes the unveiling of BIC products’ offering and its market positioning in key regions. 

BIC's business model is available in section General presentation of the Group (BIC's Business model).

The number of employees is disclosed in section  1.2.2 and the total revenue in section  1.2.1.

BIC's value chain is presented below:

As part of its “Writing the Future, Together” program (see section General presentation of the Group / Delivering a sustainable future), BIC has made 5 sustainability commitments which are an integral part of the Group’s strategic Horizon Plan.

Writing the Future, Together ‒ the commitments

In 2025, the targets will be updated based on the DMA outcomes. Post-2025 targets related to material IROs will be set by the Sustainable Development Department, reviewed by the Executive Committee and the Nomination, Governance and CSR Committee and approved by the Board of Directors.

3.1.1.3.2Interests and views of stakeholders (SBM-2)

BIC regularly engages with stakeholders to integrate their points of view and interests into the sustainability strategy and action plan. This engagement is described in the table below.

Furthermore, the DMA process included an ad-hoc survey that specifically gathered feedback from strategic suppliers, waste management companies, customers, investors, and NGOs. Governance bodies are informed about the views and interests of BIC’s stakeholders with regard to sustainability-related impacts through the presentation of the DMA results (see Section  3.1.1.2.2).

3.1.1.3.3Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)

IROs as well as their interaction with BIC’s strategy and business model are detailed at the beginning of each thematic section and are also listed in the table below. All IROs identified and considered material are deriving from ESRS topics, no entity-specific topic has been identified as of today.

For the reporting period, there has not been a material financial effect related to ESG risks stemming from the DMA. Consequently, there is no material impact on the financial statements that warrants disclosure.

3.1.1.4Impact, risk and opportunity management

3.1.1.4.1Description of process to identify and assess material impacts, risks and opportunities (IRO-1)

As required by the CSRD regulation, two dimensions were considered when conducting the DMA and assessing the materiality of sustainability matters:

• Impact Materiality: A sustainability matter is material from an impact perspective when it pertains to the undertaking’s material actual or potential, positive or negative impacts on people or the environment over the short-, medium- and long-term. A material sustainability matter from an impact perspective includes impacts connected with the undertaking’s own operations and upstream and downstream value chain, including through its products and services, as well as through its business relationships;
• Financial Materiality: A sustainability matter is material from a financial perspective if it generates risks or opportunities that affect (or could reasonably be expected to affect) the undertaking’s financial position, financial performance, cash flows, access to financing or cost of capital over the short, medium or long term.

The DMA was conducted in 9 phases and involved a core team composed of key internal stakeholders (Sustainable Development, Procurement, Commercial, Finance, Human Resources, Strategy):

• BIC determined key audiences for the Sustainability Statement to ensure that all stakeholders’ interests were considered in the process;
• BIC reviewed operations across the value chain through to the end consumer. This included the Company’s own operation sites and transportation links as well as Tier 1 suppliers, customers, investors, and end-users. BIC plans to reinforce the coverage of its value chain scope for the next iterations of the DMA, by analyzing upstream environmental impacts further than Tier 1 Strategic suppliers;
• using the key audiences and value chain boundary, BIC determined the stakeholder groups with which they should engage to assess material Impacts and Dependencies;
• BIC then determined their potential Impacts and Dependencies:
  • Impacts: Using the information from the value chain review, BIC reviewed all sustainability matters from the Application Requirement 16 (ESRS 1 Appendix A) at a high level to determine those where the Company may be having an impact. For those that are deemed to be potential impacts, related questions were formulated for use in stakeholders survey. Impacts that may also be dependencies are also noted. Potential impacts were identified based on the expertise of the BIC core team, and by also considering impacts considered by other companies, peers, and sustainability organizations,
  • Dependencies: BIC reviewed a list of potential dependencies based on the six capitals(7) as defined by the International Integrated Reporting Council (IIRC) and the ESRS Sustainability matters, as well as a list of company-specific dependencies, and selected those relevant to BIC as potential dependencies. Questions related to these dependencies were then formulated for use in the stakeholders’ survey. Whether the potential dependencies are expected to be risks or opportunities or both was also noted;
• BIC then surveyed the stakeholders up and down the value chain including investors, Tier 1 Strategic suppliers, waste companies, customers, NGOs, and members of the Executive Committee. 117 stakeholders responded to the survey;
• the Impact and financial materiality were then determined:
  • Impact materiality –  the BIC Sustainable Development team assessed the scale, scope, irremediability, and likelihood of the impacts over short, medium, and long-term periods(8). This resulted in partial severity scores, which were then combined with scores from stakeholder surveys, culminating in the final severity scores. These final severity scores were rescaled and compared to the materiality threshold value (a threshold of -1 was used). If the impact’s severity score was greater than the threshold, that impact was considered material,
  • Financial materiality – similar to Impact materiality, a scoring of dependencies(9) has been conducted based on scale, scope and likelihood, providing initial insight on risk and opportunity scoring for the first year of application. The financial effects related to some risks and opportunities have been estimated, when data was available, and a materiality threshold has been set as 5% of EBITDA.
• the final list of material impacts, risks and opportunities was then determined using input from key internal stakeholders, external stakeholder survey results, and expertise of BIC’s Sustainable Development team. This resulted in some matters(10) being elevated to materiality despite not scoring above their required threshold. Also, several impacts identified as "positive" through the stakeholders' consultation have been reassessed as "negative" by BIC Sustainable Development team. Indeed, surveys results showed that stakeholders might have taken into account their perception of BIC's performance and introduced a higher level of subjectivity that would have overrated "positive" impacts;
• the final list of material IROs was signed off by BIC’s CEO;
• a high-level mapping of major IROs from the DMA with the overall risk profile was conducted in 2024. Further alignment work will be carried out in 2025.   

BIC is committed to aligning with CSRD requirements and will continue improving the DMA process. BIC considered positive and negative impacts, risks and opportunities. However, additional work will be performed in 2025 to refine the qualifications of opportunities and reassess the magnitude and probability of financial effects.

Non-materiality of ESRS E4 – Biodiversity and ecosystems

The risk analysis conducted by an external consultancy involved mapping BIC and Tier 1 Strategic supplier locations to biodiversity-sensitive area information (using data from the World Database of Key Biodiversity Areas, developed by BirdLife International on behalf of the KBA Partnership – www.keybiodiversityareas.org). The analysis included comparing the locations of the activities of BIC and its value chain with those of key biodiversity areas. It highlighted that only two BIC sites (BIC Amazonia factory in Manaus, Brazil, and BIC Bizerte, Tunisia) are close to a biodiversity-sensitive area.

Both were found to have no contribution to direct impact drivers of biodiversity loss. Furthermore, no impact on the state of species, or on the extent or condition of ecosystems, or any impact or dependence on ecosystem services were identified. Hence, no risks, or opportunities were detected either. Likewise, no affected communities had to be consulted, and no mitigation measures were required.

Non-materiality of ESRS S3 – Affected communities

The ESRS S3 Affected Communities is not considered material since BIC’s activities, particularly its industrial operations, have negligible or low impact on the communities that could potentially be directly or indirectly affected. All environmental, social, and governance matters are managed in accordance with local legislation and the Group policies which helps to maintain a minimal impact on the surrounding communities.

Moreover, BIC engagement in educational projects is predominantly managed at the corporate level, without any specific connection to local BIC factories.

BIC ENGAGEMENT TOWARDS EDUCATION

3.1.1.4.2Group policies development and review (IRO management)

Regardless of their role, seniority or location, all employees are required, at all times, to comply with BIC’s policies and standards. The Group Policy Committee, chaired by the Director for Enterprise Risk Management (ERM), has been set up since 2024 to manage the development, issuance and regular review of Group policies.

3.1.1.4.3Disclosure Requirements in ESRS covered by Sustainability Statement (IRO-2)

The tables in section  3.1.11 present the disclosure requirements that BIC has complied with in preparing the Sustainability Statement, following the outcome of the DMA, as well as the key undisclosed datapoints. The material IROs were aligned with the CSRD datapoints using the "EFRAG IG 3: List of ESRS Datapoints" to identify the relevant disclosure requirements and datapoints for BIC.

As requested by the CSRD, the datapoints that derive from other EU legislation are presented for each of the disclosure requirements, along with the section where they can be found in the Sustainability Statement.

• SFDR: Sustainable Finance Disclosures Regulation. Regulation 2019/2088 of the European Parliament and of the Council of November 27, 2019 on sustainability-related disclosures in the financial services sector;
• Pillar 3: Regulation (EU) no. 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) no. 648/2012 (Capital Requirements Regulation “CRR”);
• Benchmark Regulation: Regulation (EU) 2016/1011 of the European Parliament and of the Council of June 8, 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) no. 596/2014; and
• EU Climate Law: Regulation (EU) 2021/1119 of the European Parliament and of the Council of June 30, 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) no. 401/2009 and (EU) 2018/1999 (‘European Climate Law’).

3.1.2Reporting requirements under the EU taxonomy for sustainable activities

Presentation of the European Green Taxonomy

Regulation (EU) No. 2020/852 of June 18, 2020 (the “Taxonomy Regulation”) establishes a framework to encourage investment in sustainable economic activities by requiring companies to disclose the proportion of their sales (Revenue), capital expenditure (CapEx) and operating expenditure (OpEx) that contributes substantially to the environmental objectives. In 2023, new activities were included in the climate targets (amendment of June 27, 2023 to the Commission delegated Regulation (EU) 2021/2139).

The Green Taxonomy establishes a unique and transparent system of classification using common terminology for economic activities that can be considered as sustainable from an environmental perspective for the purpose of distinguishing them from other economic activities.

The Taxonomy Regulation establishes 6 major environmental objectives for the EU:

• climate change mitigation;
• climate change adaptation;
• sustainable use and protection of water and marine resources;
• transition to a circular economy;
• pollution prevention and control;
• protection and restoration of biodiversity and ecosystem.

Reporting requirements

Since 2022, BIC has implemented a Taxonomy reporting in order to assess the sustainability of their economic activities in relation to the classification system.

An economic activity shall qualify as environmentally sustainable if:

• it contributes to one of the six environmental objectives and is on the list defined in the delegated acts;
• the activity meets the technical criteria for substantial contribution mentioned for this objective;
• the activity does not significantly impair any of the other five environmental objectives;
• the activity complies with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

2024 results

BIC is required to disclose the indicators that highlight the proportion of its eligible and aligned revenue, capital expenditure (CapEx) and operating expenditures (Opex) resulting from products and/or services associated with economic activities identified as sustainable in the Climate Delegated Acts.

Revenue

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, mitigation, water, pollution, circular economy and biodiversity, 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 2024 is zero (some secondary activities might be eligible but are not significant for the Group and so not included in the calculation of the eligible revenue).

OpEX

Only Research and Development costs, building refurbishment costs, maintenance, cleaning and repair expenses and any other direct expenses for the maintenance of tangible assets are taken into account in the Taxonomy.

The total amount of these costs is 101.8 million euros which equals 5.6% of total 2024 OpEx for BIC. We deemed that the amount involved was not material in terms of industry practices and the Group’s materiality threshold. This is not representative of BIC's operational activities, whose main OpEX relate to material supply, labor, brand support, selling and marketing activities. The Group has thus decided to apply the exemption of eligibility and alignment calculation for OpEx.  

CapEx

Although BIC has no activities generating eligible revenue, BIC has conducted an analysis of its CapEx to define the share of CapEx individually eligible for activities under the EU delegated acts.

In 2024, out of a total CapEx of 172.8 million euros, 13.6% was considered eligible, calculated as described in the methodology note below. Eligible CapEx primarily includes the long-term leasing of buildings and vehicles, the investment in energy-efficient equipment for BIC's manufacturing sites, the construction of new buildings, the installation of electric heat pumps , and the waste treatment of non-hazardous waste. 

In the Green Taxonomy, these investments correspond to:

BIC verified compliance with the technical screening criteria set out in the Climate Delegated Regulation and specified in the European Commission’s FAQ. Finally, the analysis of the DNSH (Do Not Significantly Harm) criteria and the minimum safeguards led to considering an amount of 4.4 million euros of aligned CapEx or 2.5% of total CapEx versus 2% of total CapEx in 2023.

Compliance with DNSH criteria

The Do Not Significantly Harm (DNSH) criteria for climate adaptation and mitigation were assessed at a Group level; they were applied solely to BIC's eligible activities. BIC performed a climate risk analysis of all its sites in 2022, and the results of this analysis have been used to assess BIC's compliance with the DNSH criteria for climate change adaptation and mitigation.

Compliance with Minimum Safeguards

The minimum safeguards were screened at a Group level to ensure alignment with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.

The Group complies with the minimum safeguard requirements in terms of human rights, corruption and bribery, fair competition, and taxation. There have been no convictions related to these topics, and appropriate procedures have been implemented, such as:

• BIC's Anti-Corruption Policy;
• BIC's Code of Conduct;
• BIC's Vigilance Plan.

Methodology

The reporting cycle is annual, with the data used for this year’s report covering the 12 months from January 1 to December 31, 2024. Financial data is sourced from the consolidated financial statements (see Chapter 6 Financial Statement).

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

Tangible and intangible assets acquired from Tangle Teezer on Dec,11th 2024 are part of the total Group CapEx. The total CapEx can be reconciled with the consolidated financial statements. It corresponds to:

• BIC’s Property, plant and equipment (see Chapter 6.1– note 9-1);
• BIC’s rights-of-use assets (see Chapter 6.1 – note 9-1);
• BIC’s intangible assets (see Chapter 6.1 – note 11).

As part of the eligibility analysis, CapEx investments above 50,000 euros were reviewed one by one. Those projects represent 89% of total Group CapEx. Once potential eligibility was established, each BIC’s business unit (Group Supply Chain, Human Expression, Flame for Life, Stationery, Group Commercial & Corporate) reviewed potential alignment with the support of the Sustainable Development team using:

• existing internal sustainability criteria (e.g., energy reduction, decrease in raw material use, and other positive impacts on the environment); and
• the Taxonomy Compass and the list of substantial contribution criteria for each activity.

Eligible and aligned proportion of 2024 Revenue, OpEX, CapEx is presented in the tables below.

PROPORTION OF REVENUE FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING FINANCIAL YEAR 2024

Proportion of OpEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering FINANCIAL YEAR 2024

Proportion of CapEx from products or services associated with Taxonomy-aligned economic activities – disclosure covering FINANCIAL YEAR 2024