Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Equity
• Economic Development

Environmental Achievements

• 100% of factory and office electricity use from renewable sources (solar, geothermal, renewable energy credits)
• 82% waste diverted from landfill (highest rate yet)
• Purchased 200 tons of carbon offsets from the Garcia River Forest Project
• 5% reduction in landfill waste compared to 2017 despite increased production

Social Achievements

• 100% of TM staff paid a living wage for three consecutive years
• 70% improvement in worker safety over 3 years
• Invested $1,041,070 in total social business initiatives
• 50% female managers on staff
• Paid an estimated $184,844 in fair premium funds to certified producer and worker groups

Governance Achievements

• Certified B Corp with a score of 125.7 out of 200 (80 required for certification)
• Registered California Benefit Corporation

Climate Goals & Targets

Environmental Challenges

• Climate change adversely affecting sourcing communities
• High demand for organic, ethically certified herbs exceeding supply
• Challenges to quality standards in some herb communities leading to rejection of large volumes of herbs
• Severe climate events decimating 94% of senna crop

Mitigation Strategies

• Increased investments in growing communities to secure high-quality, ethically sourced herbs
• Initiated long-term planning with growers
• Hired a medicinal plant agronomist to assist growers in best agricultural practices
• Increased funding commitment to Traditional Medicinals Foundation

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair Trade
• FairWild
• Organic certification
• Medicinal-grade active herbs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, droughts

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: B Corp

Certifications: USDA Organic, Non-GMO Project Verified, Fair Trade, FairWild, California Green Business, EPA 100% Green Power Partner, Green America Gold Certified Business

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• The North Bay Business Journal’s “Best Places to Work”

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Ethical Sourcing
• Community Investment
• Employee Wellbeing
• Diversity and Inclusion

Environmental Achievements

• Reached 90% waste diversion from landfill
• Operates facilities on 100% renewable energy
• Purchased 1,250 metric tons of carbon offsets
• Rigorous testing of compostable overwrap initiated

Social Achievements

• Invested $1,041,070 in social business initiatives
• Launched new nonprofit partnerships
• Implemented employee volunteer grant program
• Developed new employee herbal education training course
• Nearly 100% family living wage
• 54% of company managers identify as female
• Economic empowerment workshops for over 100 women in Egypt, resulting in 15 new businesses

Governance Achievements

• Certified B Corporation
• California Benefit Corporation
• CCOFCertified
• USDA National Organic Program certified
• Fair Trade Certified™ and FairWild® certifications

Climate Goals & Targets

Environmental Challenges

• Non-compostable overwrap
• Decreased percentage of fair trade botanical purchases as a proportion of total purchases
• Need to further reduce Scope 3 emissions

Mitigation Strategies

• Testing compostable overwrap alternatives
• Deep look at fair trade purchases and engagement with source communities
• Materiality study to inform 2030 sustainability strategy, focusing on Scope 3 emissions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Fair Trade Certified
• FairWild
• USDA Organic

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: B Corp, California Benefit Corporation, USDA Organic, Fair Trade Certified, FairWild

Certifications: B Corp, California Green Business, USDA Organic, Fair Trade Certified, FairWild

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Compostable overwraps (in development)

Awards & Recognition

• Best For The World 2019 Overall Honoree
• Best Place To Work 2020 (Sonoma County)
• 2020 Real Leaders Impact Award