Climate Change Data

Environmental Metrics

Social Achievements

• Adopted a Code of Business Conduct and Ethics including a Whistleblower Policy.

Climate Goals & Targets

Environmental Challenges

• Compliance with environmental regulations required executive officers to spend considerable time and incurred ongoing costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Responsible Land Management
• Sustainable Agricultural Practices

Environmental Achievements

• Implemented a large-scale water storage/nutrient reduction project (Water Project) on approximately half of the Company's 71,000-acre ranch.
• Donated $45,000 to 8 local charitable organizations to support local relief efforts for individuals affected by Hurricane Irma.

Social Achievements

• Alico 2.0 Modernization Program aimed at improving efficiency and reducing costs across citrus and ranch operations.
• Maintained good employee relations; as of September 30, 2017, the company had 283 full-time employees.

Governance Achievements

• Adopted the 2015 Stock Incentive Plan to link executive incentives to stockholder value.
• Settled shareholder litigation related to the Silver Nip Citrus merger.

Climate Goals & Targets

Environmental Challenges

• Adverse weather conditions, natural disasters (including Hurricane Irma), and diseases (citrus greening and citrus canker) impacting citrus production.
• Dependence on Tropicana for a significant portion of business.
• Unpredictable supply and demand pricing for agricultural products.
• Geographic concentration of citrus groves in Florida increasing vulnerability to adverse weather.
• Significant competition in agricultural operations from domestic and foreign producers.
• Climate change and potential regulations to address climate change.
• Increases in labor, personnel, and benefits costs.
• Changes in real estate tax liabilities due to land classification.
• Liability for the use of pesticides, herbicides, and other potentially hazardous substances.
• Compliance with environmental laws.
• Loss of key employees.
• Inflation.
• System security risks, data protection breaches, cyber-attacks, and systems integration issues.

Mitigation Strategies

• Purchase of insurance contracts (crop insurance).
• Working with insurers and adjusters to evaluate insurance recoveries.
• Working with industry trade groups and government agencies on potential federal relief funds.
• Alico 2.0 Modernization Program to reduce costs and improve efficiency.
• Divesting assets with low rates of return.
• Outsourcing work such as harvesting and hauling.
• Implementing a more efficient labor model.
• Planting more than 400,000 trees in fiscal year 2018.
• Using contracts with citrus processors that include minimum pricing.
• Maintaining permits for water use.
• Monitoring environmental legislation and requirements.
• Requiring lessees to comply with environmental regulations.
• Maintaining product liability insurance.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions
• Hurricanes and tropical storms
• Floods
• Droughts
• Freezes

Transition Risks

• Regulatory changes to reduce greenhouse gases
• Increased fuel emission regulations

Environmental Metrics

ESG Focus Areas

• Environmental stewardship
• Human resources
• Diversity and inclusion

Environmental Achievements

• Not disclosed

Social Achievements

• Company-wide women’s group to promote mentoring, career advancement, training, comradery, and empowerment.
• Appointment of Katherine English to the Board of Directors to promote diversity and inclusion.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Hurricane Ian significantly impacted citrus groves, resulting in fruit drop and tree loss.
• Citrus greening and canker diseases negatively impact crop yields.
• Adverse weather conditions (frost, freezes, hurricanes, etc.) pose significant risks.
• Dependence on Tropicana for a significant portion of revenue.
• Intense competition in the citrus market.
• Water use regulations restricting access to water.
• Changes in immigration laws could impact harvesting capabilities.
• Material weakness in internal control over financial reporting.

Mitigation Strategies

• Implementation of disaster programs to limit damage from hurricanes.
• Use of best management practices to control diseases.
• Purchase of insurance contracts (crop insurance).
• Working with insurers and adjusters to evaluate insurance recovery.
• Working with Florida Citrus Mutual and government agencies to secure federal relief programs.
• Diversification of customers (though Tropicana remains a major customer).
• Cost productivity initiatives to mitigate inflation.
• Commodity hedging to mitigate cost inflation.
• Implementation of remediation steps to address material weakness in internal control over financial reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding, frost, freezes, hurricanes, and tropical storms.

Transition Risks

• Regulatory changes to reduce greenhouse gas emissions.
• Market shifts towards more sustainable products.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Freeze event in late January 2022 impacting Valencia crop yield.
• Rising inflation and the conflict in Ukraine impacting transportation and commodity costs.
• Supply chain disruptions and labor shortages impacting transportation and commodity costs.

Mitigation Strategies

• Accelerated harvesting of Valencia crop to maximize production and minimize further fruit drop due to the freeze event.
• Company is monitoring the situation and assessing the impact of rising inflation and the conflict in Ukraine on its business.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions (freeze event)

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainability
• Inclusion and Diversity

Environmental Achievements

• Began treating over 35% of trees with citrus greening therapy Oxytetracycline (OTC) to mitigate impacts of citrus greening and improve fruit quality.
• Sold 17,229 acres of Alico Ranch to the State of Florida under the Florida Forever Program for conservation.

Social Achievements

• Maintained a focus on a culture of equity, diversity and inclusion, including a company-wide women’s group.
• Provided cash grants and supporting donations to support communities and promote health, safety and education.
• Owns and maintains 38 residential housing units for employees.

Governance Achievements

• Remediated material weaknesses in internal control over financial reporting.

Climate Goals & Targets

Environmental Challenges

• Adverse weather conditions, natural disasters (Hurricane Ian), and diseases (citrus greening and canker) impacting citrus production.
• Termination of a grove management agreement with third-party grove owners.
• Increased costs for fertilizer, herbicide, labor, and fuel.
• Inflationary pressures on transportation and commodity costs.

Mitigation Strategies

• Crop and property insurance; received insurance proceeds for Hurricane Ian.
• Exploring federal relief programs for Hurricane Ian.
• Implementing citrus greening therapy.
• Selling underperforming land to improve financial position.
• Continuous evaluation of acquisition or disposition of operating businesses and assets.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions, natural disasters, hurricanes, and tropical storms.

Transition Risks

• Legal, regulatory, or market measures to address climate change.