BIC_Registration_Document_2017

OUR ENVIRONMENTAL, SOCIAL, AND SOCIETAL RESPONSIBILITY Environmental responsibility concerning our operations

Since 2016, the transport teams of certain countries have been given specific goals for sustainable development, along with cost reduction and improved customer satisfaction, with the intent of boosting innovation and encouraging new initiatives. The specific monitoring of air transport was introduced in 2014, with quarterly reports to the management teams in each zone. With this regular monitoring, the Transport Community is focused on this issue at the highest managerial levels. A detailed analysis of these reports has allowed the Transport Community to identify worldwide flows and to define three key actions for their optimization. A call for tenders has been launched as a result of this analysis, prioritizing cost and flow optimization while clearly incorporating sustainable development criteria. In Europe, a new tool is being tested for distribution shipping in France, Benelux and the UK Called the “TK’Blue index,” it is used to measure GHG emissions due to transport as well as all related negative externalities (noise, soil and air pollution, safety, congestion), while also taking social factors into account. This index enables the precise, reliable monitoring of GHG emissions resulting from the shipping of BIC® products, based on the transport providers’ current vehicle fleets and applying the same calculation method for all providers. It can be included as a criterion in the selection of carriers. Optimizing shipments and routes In shipping, the main leverage points for decreasing emissions are the reduction of the distances traveled, the choice of transportation mode and load optimization. BIC’s logistical teams work on all three points in cooperation with other departments within the Group, such as Production and Sales, and service providers. Following the completion of a project to map all intra-Group flows, a study is being conducted to pool shipments on a Group-wide scale. A great many actions were undertaken in 2017 to optimize shipping and routing: In Brazil, the distribution center opened in 2016 in the ● northeastern part of the country has made it possible to replace road transport by coastal shipping. Today, 20% of the products sold to consumers in this region are shipped by water, thus reducing the delivery time by 38% and avoiding the emission of 350 tons of CO 2 per year; In 2017, nearly 85% of all imports to Mexico arriving by sea were ● then shipped by rail from the port of Veracruz to the Mexican warehouse, avoiding the emission of 250 teqCO 2 ; The ECP co-packing center in Slovakia has introduced intermodal ● transport for its exchanges with Turkey, thus reducing shipping costs by 27%, GHG emissions by 33% and fuel consumption by 63%; Tests are underway on the use of intermodal transport as an ● alternative to air freight for urgent shipments between China and Europe. Selecting responsible carriers Logistical operations are carried out by transport companies chosen by BIC. Therefore, their equipment, methods and management systems are determining factors in the level of GHG emissions, including the age of the vehicles, training in the techniques of eco-driving, the use of speed governors, tire technology, emission measurement capacities, etc.

In conjunction with the Group’s responsible purchasing policy, BIC selects carriers that can reduce the ecological footprint of its shipping operations. For example, in the U.S. and Canada, the Group only works with carriers that have received SmartWay® certification, a program designed by the U.S. Environmental Protection Agency. To encourage its transport service providers to adopt responsible practices, BIC has incorporated the reduction of GHG emissions in its criteria for selecting carriers. Lastly, to foster its carriers’ commitment to corporate responsibility, BIC extended its Code of Conduct to logistics service providers. The amended Code was made available to all the Group’s transport teams worldwide, to be put into practice with their service providers. To facilitate their carriers’ efforts, in 2015 the Brazilian teams developed a methodology for auditing a transporter’s commitment in relation to the requirements of the BIC Code of Conduct, with the goal of rewarding the most committed vendors. Performance ♦

In 100% of the new Group’s calls for D transport tenders, sustainable development is a criterion for selection

BREAKDOWN OF TONNAGE SHIPPED BY MODE OF TRANSPORT – AS % OF TOTAL

1.4% Air

Road 42.2%

56.4% Sea

BREAKDOWN OF GHG EMISSIONS BY MODE OF TRANSPORT – AS % OF TOTAL

Road 30.5%

55.7% Air

Sea 13.8%

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BIC GROUP - 2017 REGISTRATION DOCUMENT