Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Environmental Protection
• Sustainable Agriculture

Environmental Achievements

• Core products classified as “low toxicity and zero residue” by the US Environmental Protection Agency.
• Products enable significant reductions in carbon intensity of crops.
• Fermentation-based production is environmentally friendly with zero discharge (except water evaporation).

Social Achievements

• Implemented Covid-19 safeguards for employees.
• Improved remuneration policy with bonus option schemes.
• Expanded HS&E policies to include enhanced safety training.

Governance Achievements

• Complied with the UK’s Quoted Companies Alliance Corporate Governance Guidelines for Small and Mid-Size Quoted Companies (QCA Code).
• Established Audit and Remuneration Committees.
• Regularly reviews its principal stakeholders and how it engages with them.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting grower demand for fruits and vegetables.
• Reduced demand for domestic fruits and vegetables in Mexico due to the pandemic.
• Devaluation of the Mexican Peso.
• Supply chain disruptions due to Covid-19.

Mitigation Strategies

• Implemented remote working arrangements.
• Instituted safety protocols based on local Covid guidelines.
• Used multiple suppliers.
• Ordered product ahead of typical needs.
• Negotiated long-term materials agreements with favorable terms.

Supply Chain Management

Responsible Procurement

• Supply chain risk management
• Continuous process improvements
• Long-term agreements with manufacturers

Climate-Related Risks & Opportunities

Opportunities

• Reducing carbon intensity of crops

Reporting Standards

Frameworks Used: QCA Code

Certifications: ISO 14001 (Printer and paper mill)

Sustainable Products & Innovation

• Harpin αβ
• PREtec peptides

Environmental Metrics

ESG Focus Areas

• Environmental
• Social Responsibility
• Governance

Environmental Achievements

• Products rapidly degrade and leave no detectable residues. Production process does not create or discharge byproducts into industrial wastewater.
• Recycling of office paper in Holly Springs office resulted in savings equivalent to thirty-nine trees.
• Moved corporate headquarters to a pedestrian-friendly location, reducing automobile usage and associated carbon emissions.
• New headquarters employs energy savings enhancements (motion sensor lighting, high-efficiency windows, heat pumps, reflective roofing).

Social Achievements

• Initiated an annual Global Day of Service.
• Implemented regular meetings with each employee to create and implement a professional growth and training plan.
• Switched to a benefits provider that offers more comprehensive health insurance benefits at a lower cost.
• Maintained hybrid work model, reducing commuting and greenhouse gas emissions.

Governance Achievements

• Established a global Sustainability Leadership Team.
• Thoroughly reviewed and updated Anti-bribery & Corruption policy.
• Implemented a social media policy.
• Appointed two new Non-Executive Directors to improve board diversity.

Climate Goals & Targets

Environmental Challenges

• Weather issues and exchange rates negatively impacted EMEAA revenue.
• Falling ethanol and sugar prices in South America reduced farmer income and crop input purchases.
• Higher crop input costs across all categories in South America.
• Intense rainy season in South America affected field cultivation.
• High Brazilian interest rates (13.75%) caused growers to delay crop input purchases.

Mitigation Strategies

• Strong relationships with channel partners and co-develop and market PHC technology.
• Planning to hire additional personnel in 2023 to support commercial business growth.
• Actively engaged with potential partners to ensure they understand the value of PREtec technology.
• Increased forecasting of lead times from toll manufacturers to compensate for shipping delays.
• Ordered higher quantities of raw materials to achieve favorable bulk pricing and reduce shipments.

Supply Chain Management

Responsible Procurement

• Selecting organizations reflecting our values and reputational standards.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

• Goal 2 (Zero Hunger)
• Goal 13 (Climate Action)

Products support sustainable food production, reducing reliance on chemical fertilizers and improving crop yields.

Sustainable Products & Innovation

• Harpinαβ
• PREtec products (Saori, PHC279, PHC949)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social Responsibility
• Governance

Environmental Achievements

• Products rapidly degrade and leave no detectable residues on the crop or in the soil. Our products are made via a process which does not create or discharge any harmful byproducts into the industrial wastewater system.
• PREzym achieved Zerya® zero-residue certification.
• Active recycling programs in offices and laboratories; standardization in commercial packaging reduced waste.

Social Achievements

• Implemented regular one-to-one meetings with each employee to create and implement a professional growth and training plan.
• Launched a new employee newsletter, “The PHC Connection”.
• Continued hybrid office/home work model; committed to offering a competitive benefits package.
• Second annual Global Day of Service; new policy permitting one additional paid day off for community volunteering.

Governance Achievements

• Welcomed two new non-executive board members.
• Adopted a Whistleblower Policy and an Anti-Slavery and Child Labor Policy.

Climate Goals & Targets

Environmental Challenges

• Exceptionally volatile conditions in the US market due to price volatility and availability of fertilizers and agrochemicals, exacerbated by high interest rates leading to distributor destocking and delayed purchases.
• Supply chain disruptions due to global events (implied).

Mitigation Strategies

• Focusing on distribution of Harpinαβ in existing markets and aligning with large distributors.
• Scaling the business globally with PREtec product launches.
• Building a pilot plant facility in Seattle to optimize manufacturing methods.
• Securing a production facility for Saori and Teikko to achieve volume cost targets.
• Recovering inflation in price.
• Managing volatility in revenue.

Supply Chain Management

Responsible Procurement

• Supply chain risk management
• Continuous process improvements by working closely with toll manufacturers
• Negotiated long-term materials agreements with favourable terms

Climate-Related Risks & Opportunities

Physical Risks

• Severe climate change could adversely affect the Group’s distribution channel

Transition Risks

• Regulatory changes

Opportunities

• Products help crops thrive under severe drought and flooding conditions

Reporting Standards

Frameworks Used: QCA Code 2018

Certifications: Zerya® (PREzym)

Sustainable Products & Innovation

• Harpinαβ
• PREtec products (Saori, Obrona, PREzym, Innocul8, Moshy, Teikko)