FISCAL YEAR 2021 Annual Sustainability Report - Scoular

Transcription

FISC AL YE AR 202 1Annual Sustainability Report

SCO U L AR ’ S CO R E VALU E SCO R E VA LU E S – Inform the qualities we embodywhen working toward our vision and mission.TAB LE O FCO NTE NTSCEO Statement . . . . . . . . . . . . . . 3About Scoular . . . . . . . . . . . . . . 4About this Report . . . . . . . . . . . . 5Scoular’s Sustainability Strategy . . . . 6Goals and Commitments . . . . . . . . 7Integrity. Our word is our bond. We do whatis right, not just what is easy or allowable.We are candid in our relationships.Curiosity. It is the root of our creativity, innovationand flexibility. We seek deep understanding ofmarkets and customers’ unique needs. Coupled withEcosystems and Products . . . . . . . . 11Communities. . . . . . . . . . . . . . . 14Diversity and Inclusion. . . . . . . . . 17mutual benefit.Safety. . . . . . . . . . . . . . . . . . .20there are many paths to reach them. Success meansthat we deliver results in the right way.Inclusion. We win when we bring a diverseset of ideas and people together to collaborate forcompany success.F Y2 1 S U S TA I N A B I L I T Y R E P O R TPlanet. . . . . . . . . . . . . . . . . . . 8knowledge, it leads to creative, unique solutions forPerseverance. We commit to shared goals, knowing2Pillar SpotlightsCompassion. Our employees are people first. Weshow compassion when adversity affects any ofus. Each of us is stronger because of this.Stewardship. We deploy the assets of the company towin, while being disciplined to safeguard them for thenext generation.

At Scoular, we have a long history of creating safe, reliable, and responsible supply chainsolutions. For more than a century, Scoular has been responding to the needs of our customersand changes in our industry. For us, it is no longer possible to separate the business we arein, from the people, communities, and ecosystems that enable what we do at Scoular. Notonly is this responsible business, but it’s also smart business, which generates tangible valueTo OurStakeholdersfor Scoular and its partners. As an employee-owned company, we take pride in the way weoperate, and we believe by working together, we create shared value and a path to success forthe entire value chain.In November 2020, we formalized our environmental, social,and economic commitments with the launch of our inauguralSustainability Strategy. The strategy’s five pillars are both authenticto our business, and the business of our end user and producerpartners. Like all things that we do at Scoular, we put people at thecenter of our strategy. Ensuring a safe, diverse, and inclusive culturePaul Maassallows our employees to focus on what they do best – creating theA S A N EM P LOY EE- OW N EDChief Executive Officerinnovative solutions that deliver our products worldwide. We believethat those solutions, and with the help of the Scoular Foundation,B U S I N E S S , W E TA K E P R I D E I NT H E WAY W E O P ER AT E , A N DF Y2 1 S U S TA I N A B I L I T Y R E P O R TW E B ELI E V E BY WO R K I N G3we are building prosperous communities that are well equipped toprotect and manage the resilient ecosystems that play a vital role inthe health of our planet.As part of our first Annual Sustainability Report, we are excitedMegan BelcherTO G E T H ER , W E C R E AT Eto share our progress on each of our five pillars and spotlight ourS H A R ED VA LU E A N D A PAT HResponsible Product Sourcing, Engaging in Our Communities, PromotingTO S U CC E S S FO R T H E EN TI R EVA LU E C H A I N .accomplishments on Reducing Our Carbon Footprint, FosteringChief Legal & ExternalAffairs OfficerDiversity and Inclusion, and Upholding Workplace Health and Safety.While we are still quantifying many of our goals, we realize thesolutions required to solve the world’s most challenging issues willevolve. Rather than waiting for certainty, we choose to act now andlead through uncertainty. Most importantly, we want to reemphasizeour dedication and commitment to delivering responsible supplychain solutions for all our partners.Paul MaassMegan BelcherJoshua MellingerHead of CorporateSustainabilityJoshua Mellinger

About ScoularScoular by the numbers (FY21)1000 80 CountriesEmployeesShipping goods locallyand internationally100 Facilities1 Billion 6 Billion 900 Million(Offices, Storage,Handling, Processing) inNorth America and AsiaBushels TradedSales of Food & FeedIngredientsAnnual RevenueWhat we doF Y2 1 S U S TA I N A B I L I T Y R E P O R TWe facilitate solutions for our customers atevery step in the agricultural supply chain.4 Grains Pet Food Ingredients Food Ingredients International Trade Animal FeedIngredients TransportationWho we serveWe deliver innovative supply chain solutions infood and feed that help meet industry goals.P R AT T, K S H A RV E S T 2 02 1 Farmers Grain Processors Animal FeedManufacturers AquafeedManufacturers PetfoodManufacturers Food, Beverageand SupplementManufacturers Renewable EnergyProducers Distilleries

REPORTING PERIOD: SCOULAR’S FISCAL YEAR FY2021(JUNE 1, 2020 – MAY 31, 2021)This report reflects our Sustainability progress during Scoular’sAbout this Report2021 Fiscal Year. It covers our most material topics and risk acrossthe environmental, social, and governance metrics establishedPhase 1: Aligning our purpose and profits (FY21)by our Board of Directors and Senior Leadership Team.By communicating our progress, we maintain alignment with our stakeholdersEstablishPerformanceBaselineLaunch Sustainability Programand Formalize CommitmentsSet TargetsReportand facilitate opportunities to collaborate with our partners. While thisreport serves as our annual communication on progress, we are activelyFirst Sustainability StrategyFirst Annual Sustainability Reportworking with our partners to help address their sustainability aspirationsand embed sustainability into the food and feed solutions we offer.STAKEHOLDER ENGAGEMENT, MATERIALITY, AND GOVERNANCEStakeholder Engagement: In 2020, Scoular launched its inaugural companywide sustainability effort, in partnership with an expert global consultancy.Materiality: During the process we collected inputs from seniorbusiness leaders, functional experts, and external partners toalign our business model and purpose to the issues that impactCurrent SustainabilityStrategy Launched inNovember 20201.Overview of Scoular’sSustainability Strategy2.Scoular’s Goalsand Commitments3.Scoular’s Progress to Date on Each Pillar(including Historical Initiatives)Development included: Strategic and operational risks Stakeholder engagement Initial materiality assessment ESG governance Formalized goals andcommitmentsF Y2 1 S U S TA I N A B I L I T Y R E P O R Tthe food and feed value chains in which we operate.5Governance: Our position in the value chain puts environmental, social,and economic opportunities on the board agenda for every meeting (heldquarterly), even if the issues are indirect. Our CEO and Chief Legal & ExternalAffairs Officer (Head of ESG) receive updates from corporate sustainabilityleadership and pillar teams to provide an assessment of risk and opportunities.Phase 2: Improving our impact (FY22 and Beyond)Bias for Action: We are a solutions-based company and while thereFuture reports will include additional details onbaselines, targets, new initiatives and detailedtracking on progressare still performance-based targets that are being quantified,we are committed to acting now and continuing to updategoals as they are approved by Scoular’s Leadership.New Capabilities and InitiativesFocused on Achieving GoalsReport and TrackProgress

Scoular’s Sustainability Strategyand we are committed to addressingour most material issues by:At Scoularbelieve:At Scoularwe webelieve:that the health of ourplanet is important, andclimate plays a vital rolePlanetMaintainin maintaining resilient ecosystemsthat produce safe, nutritious, andhigh-quality ingredientsRestoreF Y2 1 S U S TA I N A B I L I T Y R E P O R Tit is critical to support socially diverse andprosperous communities that protect,manage, and restore local resources6FosteringResponsibleProduct SourcingEcosystems& ProductsSupportProtectEngagingin OurCommunitiesCommunitiesConnectwe should connect the needs of ouremployees and partners with innovativesolutions that deliver feed & food worldwideReducingOur CarbonFootprintBuildPeoplePromotingDiversity &InclusionWe do this by creating safe, reliable, & responsible supply chain solutionsUpholdingWorkplaceHealth & Safety

Goals and CommitmentsPillarsScope 1 2EmissionsMWh RenewableEnergy ConsumedCarbon IntensityScope 3 EmissionsResponsibly SourcedProductProducer Programs% of Sales MixCertified ResponsibleStrategic PartnersEngagingin OurCommunitiesGiving % of ProfitsStrategic PartnersPromotingDiversity &InclusionD&I TransparencyGender ParityBIPOC RecruitingExec. CoachingDARTCross Functional KPIsReducingOur CarbonFootprintF Y2 1 S U S TA I N A B I L I T Y R E P O R TFosteringResponsibleProduct Sourcing7United Nations SDG AlignmentGoal TypeUpholdingWorkplaceHealth & SafetyLegend:Baseline in ProgressFresh WaterConsumption PilotF Y2 1Volunteer HoursAnnual Pay ReviewSafety EngagementBelow ManagerQuantitative TargetQualitative TargetGoal AchievedScoular Supports the Sustainable Development Goals

Our CommitmentsPLANETABSOLUTE CO2eReduce absolute greenhousegas emissionsReducing OurCarbon FootprintAt Scoular we believe the health of ourIN PROGRESSOn Track - 2025CO2e INTENSITYReduce greenhouse gasemissions intensityplanet is important and climate plays avital role in our collective success. WeIN PROGRESSOn Track - 2025have a history of integration in nearlyevery agricultural supply chain, so weVALUE CHAIN CO2eunderstand the effects and impact ofcarbon emissions.CO2Reduce value chaincarbon footprintIN PROGRESSOn Track - 2025As stewards of our industry, we arecommitted to addressing our ownRENEWABLESenvironmental impacts and safeguardingIncrease renewableenergy consumedF Y2 1 S U S TA I N A B I L I T Y R E P O R Tour action for the next generation.8WATERImplement pilot programfocused on reducingfreshwater consumptionIN PROGRESSOn Track - 2025NOT STARTEDOn Track - 2025

FEATURED HIGHLIGHTSOUR OPERATIONSReducing the impact of our operations on the environmentACROSS THE VALUE CHAINEnergy efficiency - we are upgrading our bunker facilities and reducingReducing the intensity of products delivered through efficientthe energy required to hold bunker coverings in place. A standard bunkervalue chain operationsPL AN E T - R ED U CI N G O U R C AR BO N FOOTPR I NTis 380’ long x 130’ wide and requires seven electric aeration fans to9maintain the static air pressure needed to hold the covering in place inThroughput and storage capacity - substantial investments in truckwindy conditions. With the installation of new louvers, we now have thedumping capacity improved throughput, reduced trucking wait times,ability to run the systems on only three fans for lower wind conditionsand vehicle idle time emissions for our producers.and we are prototyping the use of anemometers to automatically varythe power output based on windspeed. Additionally, we are increasingthe use of soft starts on large motors and variable frequency and variablespeed drives to reduce motor power consumption and prevent damagingpower surges.Rail and transportation – rail transport creates 1/3 of the emissionscompared to long haul trucking. Scoular has invested in multiple trainloading facilities and over 100 car trains to move interior grain from 1215 facilities to market. Our partnership with the Kansas Department ofTransportation is helping to add rail trackage and switches, expandingMaterials reduction (digitally enabled solutions) – Scoular implementedour ability to reduce trucks on the road and cut the emissions associatedFilebound, a digital solution that reduced the amount of annual paperwith moving products to market.documentation we create, store, and shred by 1.5 million pieces of paper.We see increasing use of digital tools to reduce rail jackets, exportpaperwork, and other paper dependent processes, reducing our overallwaste and improving our ability to manage complex processes, gatherinsights, and improve our level of customer service.Nature - we use vegetative barriers and have planted grass aroundall our bunkers to ensure facility operations minimize impact to localecosystems. We are also using tree rows as natural windbreaks atfacilities where additional erosion control protection is needed.Asset utilization and backhaul - our cross-country trading businessesare able to match backhaul lanes moving more than 700,000 annualloads, which allow Scoular to backhaul grain against fronthaul aggregatesand reduce overall miles driven.Technology and transparency - we are working with technologypartners, such as Roger and Bushel , to deliver solutions that increasetransparency, enable faster payments, and reduce inefficiencies acrossthe supply chain.

PL AN E T - R ED U CI N G O U R C AR BO N FOOTPR I NT10Scoular enables supply chain sustainabilitythrough efficient operations.LOOKING FORWARDAs farmers invested in expanded harvesting equipment the increased supply Baseline current environmental impactof product pushed the limits of traditional storage facilities. To deliver a fasterby conducting a corporate carbonharvest and better customer experience for our farmers, Scoular investedfootprint assessment for operationsmillions in upgrading capacity to reduce truck wait times for our producers. As(carbon for which we’re directlywe strive to run more environmentally friendly operations, we realize that theresponsible) and upstream supplyinvestments we are making to reduce energy, water, and waste in our facilitieschain (measurable carbon use we’reis also reducing inefficiencies across the supply chain and helping our partnersconnected to)meet their own sustainability goals. Analyze facility portfolio and identifyopportunities to reduce footprint orinstall renewable generation Update reduction targets and discloseimpact through standard reporting“methods and frameworks protocolsOperating our facilities in themost efficient and responsiblemanner remains a criticalcapability for Scoular inserving our producers andcustomers, as well as reducing”our own carbon footprint.Ron BinghamSr. Vice President& Grain Division Manager

ECOSYSTEMSand PRODUCTSFostering ResponsibleProduct SourcingOur CommitmentsPRODUCT SOURCEDWe understand the importance ofIncrease total volume ofmarine products sourced fromsustainable processors oraquaculture sourcesIN PROGRESSOn Track - 2025maintaining resilient ecosystems thatproduce safe, nutritious, and high-PRODUCT SOLDIncrease percentage of salesfor responsibly sourced andcertified marine productsquality food and feed ingredients.On land and in oceans our ecosystemsIN PROGRESSOn Track - 2025face potential losses to biodiversityand animal habitat that could lead tofood supply disruptions.PRODUCER PROGRAMSDevelop producer programsthat are carbon focused forclimate smart agricultureF Y2 1 S U S TA I N A B I L I T Y R E P O R TWe are committed to creating supply11chain solutions that reduce ecosystemIN PROGRESSOn Track - 2025impact and encourage the responsiblemanagement of natural ecosystems.PARTNERSEstablish strategic relationshipswith marine sustainability NGOsand support additional NGO ledimpact programsIN PROGRESSOn Track - 2025

ECOSYS TE M S & P RO D U C T S - FOS TER I N G R E S P O N S I B LE PRO D U C T SO U RCI N G12FEATURED HIGHLIGHTSMarine Producer programs – facilitated SEDEX Gap assessments and helped multiple new suppliersachieve SEDEX 4 Pillar certification Supply transparency – leveraged the MarinTrust Identity Preserved model to approve newfisheries and processors within Scoular’s certificate Partner collaboration – established partnerships with NGOs to understand the potentialvalue of bringing low impact sources of fish meal to marketAgriculture Optimized producer inputs – improved on farm practices by sourcing, cleaning, anddistributing 100,000 acres of cover crop seed for producer partners Supply chain collaboration – registered our first Farm Management group with theSustainable Agriculture Initiative Platform, covering 5,000 acres of sustainable ryeproduction Certified product - met increased product demand with responsible sourced commoditiesfrom sustainable growing regions, including SSAP certified soy product exported to Asia Improved access and handling – increased our ability to meet organic demand bymaintaining 12 certified organic facilities Biofuels – partnered with Pratt Energy to increase the efficiency of operations and allowScoular to bring wet distillers grain (WDG) and dried distillers grain (DDG) to market Branded claims – long term strategic relationships with premium milling brands that trustScoular, allowed us to bring specialized hard red winter wheat into facilities making premiumflour products for consumer markets that value responsibly produced products

ECOSYS TE M S & P RO D U C T S - FOS TER I N G R E S P O N S I B LE PRO D U C T SO U RCI N G13Scoular delivers the sustainableproducts that brands are built onLOOKING FORWARDWhen a leading alternative meat company experienced increased demand, they Increase adoption of SEDEX orpartnered with Scoular to find product that aligned with its sustainability mission.equivalent social responsibilityThe company needed a high-quality soy protein that was non-GMO and wouldn’tassessments by partnering directlycontribute to deforestation. Even though there was certified product availablewith marine products suppliersin the marketplace, it didn’t meet the company’s high responsibility standardsbased on the production region. As an industry leader in sustainable soy products, Collaborate with suppliers to initiateScoular was able to bring additional product online from sources that were closerfishery assessment and define a pathin proximity to the customer’s manufacturing facilities and were deforestation free.to responsible sourcing certification(s)This additional supply helped to fuel the customer’s growth in new markets and its continued success.Pilot initial set of customer facingproducer programs that are carbon“focused for climate smart agriculture I am especially proud of thecommunity engagement opportunitiescollaboration efforts our marineproteins team has led in developinga best-in-class portfolio ofsustainable aquaculture solutions.As we build resiliency into everystep of the value chain, ourcustomers now have access to moresustainable product options fromsources they can trust regardless ofthe product they need.”Formalize role of NGO partners inJoe AndrusSr. Vice President& Feed Division Manager

COMMUNITIESEngagingin Our CommunitiesOur CommitmentsGIVING %We know it is critical to supportsocially diverse and prosperouscommunities that protect, manage, andrestore local resources.Invest 2% of annualprofits (before taxes) inhigh impact communityinvestment areas, with focuson rural communities andcultivating soil healthIN PROGRESSOn Track - 2025VOLUNTEER HOURSComplete a milestonenumber of annual companyvolunteer hoursScoular has the privilege of operatingin a diverse range of communitiesin North America, Asia and beyond.IN PROGRESSOn Track - 2025As a company that deeply valuespartnership, we strive to buildF Y2 1 S U S TA I N A B I L I T Y R E P O R Tprosperous communities where we14work, live, and operate.We are committed to creating apositive impact by collaboratingwith local communities, leveragingresources from The ScoularFoundation, and harnessing thecommunity spirit of our employees.PARTNERSHIPSDevelop strategic partnershipswith local organizations,customers, and third partiesIN PROGRESSOn Track - 2025

FEATURED HIGHLIGHTSImpact Investments Invested 2% of the company’s profit before taxes in the ScoularFoundation for distribution to non-profit partners Expanded volunteer activities with imaginative community parties, andcompany-wide giving events at our locations around the worldCO M M U N ITI E S - EN GAG I N G I N O U R CO M M U N ITI E S Strengthened our investment alignment and giving events for partnerand customer recognition around Scoular’s sustainability pillars15Foundation Strategy Developed three-pronged strategy based on employee communityengagement and leadership, company community engagementand leadership, and foundation funding and engagement Re-envisioned the guiding principles the Scoular Foundation leverages for givingdecisions, with an emerging focus on our sustainability pillars and building aconsistent, strategic, and year-over-year community partnerships around the world Created new vision and mission for the Scoular Foundation consistentwith an eye toward strategically supporting our sustainability strategy Updated and expanded Trustee membership in the Scoular Foundation to include Scoular’sChief Diversity Officer to drive greater connectivity to our Diversity & Inclusion strategiesEmployee Engagement and Partnerships Established strategic ways to collaborate on community giving with employeeresource groups (ERGs), Scoular’s D&I strategy, and around key events Expanded company leadership in non-profit leadership anddevelopment of a Boardperson program for Scoular Implemented new and imaginative communication strategies to broadenengagement around Scoular’s community engagement Joined the American Connection Project and the American ConnectionCorps, as a strategic partner for funding rural fellowships, focused on closingthe digital divide and building the next generation of rural leaders Launched a free rural broadband access pilot in collaborationwith the American Connection Project

CO M M U N ITI E S - EN GAG I N G I N O U R CO M M U N ITI E S16Scoular invests in the placesthat matter mostLOOKING FORWARDDeep community engagement, and giving back in transformative ways to the Invest 2% of the company’scommunities where our employees live and work, have been part of Scoular’sprofit before taxes in thefabric for the entirety of its 128-year history, and a legacy we continue to buildScoular Foundationon with our sustainability program. One of the ways we give back is through ourcollaboration with InCOMMON, a longtime community partner for Scoular and partnerships and actively seek tothe Scoular Foundation, with their mission to alleviate poverty at a root level bystrengthen impact by involvinguniting and strengthening vulnerable neighborhoods consistent with so many ofmore customers, suppliers, andour foundation’s giving principles. In 2021, Scoular employees made an impact bypartners in community eventsvolunteering as part of the United Way of the Midlands Day of Action, cleaningup the community garden at inCOMMON Community Development, as well aspartnering on holiday giving events and investments from the Scoular Foundation.Continue year-over-year Expand the reach of employeeengagement programs across facilityportfolio with increased alignmentto our Sustainability pillars“ Our company’s and employees’Establish a rural engagementcommittee to assess potentialinvestments through actsopportunities for increasing ourof service and the work of theengagement and investmentScoular Foundation bring our valuesin the rural communitiesof compassion and stewardship towhere Scoular operates”life each and every day at Scoular. Megan BelcherChief Legal &External Affairs OfficerPilot a process for tracking milestonehours and engagement metrics

PEOPLEPromoting Diversityand Inclusion (D&I)Our CommitmentsTRANSPARENCYWe believe that creating a diverseand inclusive culture allows us toImplement methodfor transparencyon D&I progressIN PROGRESSOn Track - 2025better understand and connectthe needs of our employees andRECRUITINGpartners with innovative solutions thatdeliver feed and food worldwide.Develop recruitment, pipelineand retention program forBlack, Indigenous, andPeople of ColorIN PROGRESSOn Track - 2025With a global, multi-cultural mindset, werespect the many cultures representedGENDER PARITYReach milestone goalsfor gender parityacross the company and ensure thatinclusive perspectives are seen andIN PROGRESSOn Track - 2025heard. Inclusion is a core value atF Y2 1 S U S TA I N A B I L I T Y R E P O R TScoular, and we are committed to17integrating it into our business strategy.EXECUTIVE COACHINGANNUAL PAY REVIEWCreate annual executiveleadership coaching programwith affiliated KPIsImplement a system forand completion of annualpay parity reviewsIN PROGRESSOn Track - 2025IN PROGRESSOn Track - 2025

FEATURED HIGHLIGHTSLeadership Engagement Deployed Scoular’s first comprehensive diversity and inclusion (D&I) strategy, including goals for allsenior leadership team members, led by Jennifer Deitloff, Chief Diversity Officer Increased gender diversity on senior leadership team by adding two women, CHRO and President ofPetsource via internal promotionsP EO P LE - PRO M OTIO N D IVERS IT Y & I N C LUS I O N Participated in first all employee inclusion survey18Education / Awareness Launched Scoular’s first employee resource group, Scoular Women Influencing Culture (SWIC), ledby Megan Belcher, Scoular’s Chief Legal & External Affairs Officer Kicked off first D&I Advocate group, a group of 13 Scoular employees coming together for robustlearning and awareness sessions designed to provide them with stronger skillsets to be internalD&I advocates Developed Scoular Talks, employee roundtable discussions on important D&I topics, led by D&ICouncil members Created meaningful programming including General Manager Culture sessions, fireside chats withinspirational leaders, virtual coffees, MBA in a day, and more than 10 all employee training/awarenessopportunities with average attendance at over 150 employees Launched multiple employee book clubs and a Wellbeing Webinar Series to facilitate info-sharingand culture buildingRecruiting Expanded recruiting pipeline by building relationships with universities, including Kansas StateUniversity College of Agriculture Introduced a new pilot internship program in partnership with Avenue Scholars, an organization thatprovides career support to underserved youth in the Omaha area and provides individual studentsupport to address crucial needs of high performing high school students

Scoular celebrates a milestoneyear for our cultureLOOKING FORWARDJuly 30, 2020 marked the official launch of Scoular Women Influencing Culture(SWIC), Scoular’s first Employee Resource Group. SWIC united women of Scoulararound the world in innovative and new ways. SWIC’s leadership council and D&I CouncilP EO P LE - PRO M OTIO N D IVERS IT Y & I N C LUS I O Nmembers built a robust community, learned a lot more about one another, shared19challenges and successes, and found time to celebrate along the way. SWIC offeredfive General Manager education sessions providing a deep dive into the company’s feature series of members on Scoular’s intranet, as well as hosting the company’sfirst all employee celebration of International Women’s Day and offered a fullIncrease female representation on Scoular’sBoard of Directorsbusiness units, with each session attended by hundreds of women. Also offeredwere fireside chats with high level executive women from outside of Scoular, aCreate new executive sponsor role for the Launch additional employee resource groups Increase reach of trainings and programming Establish new partnerships to support urbanmonth of internal and external events celebrating Women’s History Month. SWICfinished the year by undertaking the work to develop relationships with industryorganizations like Women in Agribusiness.“agriculture and D&I initiativesI am incredibly proud ofthe progress that Scoularhas made to deliver on ourstrategy and I’m excited tocontinue to evolve our cultureto cultivate an environmentthat drives innovation andincreased business value.”Jennifer DeitloffChief Diversity Officer

PEOPLEUpholding WorkplaceHealth and SafetyOur people are the inspiration behindour innovative solutions and theOur CommitmentsDARTfoundation of everything we do atScoular. That is why ensuring theReduce our percentageof days away restricted ortransferred injuriesIN PROGRESSOn Track - 2025safety and well-being of our employeeswill always be our top priority.SAFETYENGAGEMENTWe are committed to working withindustry safety organizations andIncrease our safetyengagement at the belowmanager levelIN PROGRESSOn Track - 2025remaining in line with the best-in-classsafety practices across all levels andF Y2 1 S U S TA I N A B I L I T Y R E P O R Tfunctions at Scoular.20KPI’SReach milestone improvementson key performance indicators,established by a companycross-functional committee.IN PROGRESSOn Track - 2025

FEATURED HIGHLIGHTSP EO P LE - U PH O LD I N G WO R K PL AC E H E ALTH & SAFE T Y Injury free locations - 43 of 51 locations remained injury free during the year21 Preventative systems and tools - entered into an agreement with Intelexto develop a SMS (Safety Management System) intended to be rolled out inthe Fall/Winter of 2021, with the venture to develop a system in stages thatprovides frontline managers with tools capable of assisting with IncidentManagement, Leading and Lagging Indicators, Risk Management andEmployee Training Reporting and tracking - developed and implemented a monthly leadingand lagging statistical report that included safety performance for allfacilities within Scoular and launched initiatives to introduce workplacesafety observations conducted by Facility Managers/Supervisors Facility programs and practices - introduced facility sanitation programsfor split grains, focused on timely cleanup and preventing runoffs into watersystems. This reduced need for herbicides to maintain volunteer growthfrom spilled grains Reduced chemical usage

Report and Track Progress New Capabilities and Initiatives Focused on Achieving Goals Future reports will include additional details on baselines, targets, new initiatives and detailed tracking on progress Establish Performance Baseline Set Targets Report 1. 2. FY21 SUSTAINABILITY REPORT 3. 5