Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Sustainability
• Sustainable and Responsible Practices
• Corporate Governance

Environmental Achievements

• Ranked highest amongst global cannabis companies in the SAM Corporate Sustainability Assessment (CSA)

Governance Achievements

• Ranked highest amongst global cannabis companies in the SAM Corporate Sustainability Assessment (CSA)

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SAM Corporate Sustainability Assessment (CSA)

Third-party Assurance: S&P Global (formerly RobecoSAM)

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Achieved USDA Organic certifications for SMGH cultivation facilities.
• Reduced cost per gram of dried flower from $0.12 to $0.05 by implementing facility upgrades, genetic program improvements, and cost reduction in direct consumables and overheads.
• First industrial-scale seed harvest in Colombia (80 million CBG-dominant seeds).

Social Achievements

• Ranked highest amongst global cannabis companies in the SAM Corporate Sustainability Assessment.
• Co-development of cannabinoid-based product for treatment of COVID-19 related lung inflammation in partnership with the University of Toronto.
• Successful registration of Pura H&W CBD-based derma-cosmetic product line in the European Union.

Governance Achievements

• Completed a long-form prospectus and IPO; common shares publicly traded on the TSX, OTCQX, and Frankfurt Stock Exchange.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global commerce, causing potential delays in commercial initiatives and potential for reduced customer demand, supply chain disruptions, staff shortages, and increased government regulations.
• Obtaining necessary import and export approvals for product distribution.

Mitigation Strategies

• Implemented work-from-home policies to ensure employee safety.
• Preserved capital by reducing non-essential operating expenditures and directing resources towards commercial efforts.
• Continued to focus on commercial activities to keep planned launches on schedule.

Supply Chain Management

Responsible Procurement

• Established a low-cost, sustainable, and organic supply chain in Colombia.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SAM Corporate Sustainability Assessment

Certifications: USDA Organic

UN Sustainable Development Goals

• Not disclosed

Sustainable Products & Innovation

• Pura H&W derma-cosmetic line
• RHO Phyto medical cannabis line

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Launched MyMedi.ca, a medical cannabis care platform, providing access to tens of thousands of patients nationwide.
• Increased Canadian commercial listings by 120% and finished goods sold by 70% compared to Q2 2022.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Maintaining sufficient and effective production and R&D capabilities.
• Securing partnerships with manufacturers and distributors in international markets.
• Developing a brand to market products successfully to consumers.
• Attracting and retaining key personnel.
• Navigating evolving regulatory frameworks in Canada, Colombia, and other jurisdictions.

Mitigation Strategies

• Management of working capital, cash flows, and issuance of share capital to mitigate liquidity risk.
• Cost-saving efforts by bringing services in-house.
• Investment in brand awareness, customer and patient education, and expansion into new retail locations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: SMGH received Good Agricultural, and Collection Practices (“GACP”) certification under the United States Department of Agriculture (“USDA”) National Organic Program for its hemp cultivar.

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Avicanna was ranked highest amongst global cannabis companies in the SAM Corporate Sustainability Assessment (CSA) in the 2020 Sustainability Yearbook.

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Attained GACP certification for its hemp cultivar and USDA National Organic Program certification in 2019 for its hemp cultivar.

Social Achievements

• Launched Avicenna Academy, a medical education portal for healthcare professionals.
• Shoppers Drug Mart partnership to transition Medical Cannabis by Shoppers to Avicanna and launch MyMedi.ca, a new medical cannabis care platform.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Regulatory framework governing cannabis for recreational and medicinal use in Canada, Colombia, and any other jurisdiction.
• Risks of foreign operations (agriculture and drug policies, nationalization, expropriation, etc.).
• Potential inability to obtain or retain licenses required to grow, store, and sell cannabis in Colombia.
• Compliance with evolving environmental, health and safety laws.
• Potential government policy changes or shifts in public opinion.
• Inflationary risks.
• Competitive conditions, consumer tastes, patient requirements and spending patterns remain relatively unknown.
• Limited history of operations.
• Inability to retain and attract employees and key personnel.
• Potential for delays in obtaining, or restructuring conditions imposed by, regulatory approvals.
• Potential increases in material and labour costs.
• Reliance on third-party manufacturers and distributors.
• Transportation disruptions to our courier services.
• Cost of key inputs is unpredictable.
• Compliance with laws relating to privacy, data protection, and consumer protection.
• Potential for information systems security threats.
• Reliance on key suppliers and skilled labour.
• Inability to effectively implement quality control systems.
• Potential for conflicts of interest to arise among our key stakeholders.
• Inability to sustain our pricing models.
• Inability to successfully identify or complete future acquisitions.
• Inability to effectively protect personal information.
• Exposure to product recalls, liability claims, regulatory action and litigation based on products.
• Inability to protect intellectual property in relevant markets.
• Market price for the Common Shares may be volatile and subject to wide fluctuations.
• Inability to effectively prevent fraudulent or illegal activities by our employees, contractors, or consultants.
• Inability to effectively prevent security breaches at our facilities.
• Inability to effectively manage our growth.
• Outside factors may harm our reputation.
• Dependence on the performance of our subsidiaries.
• Certain of our operating subsidiaries are not wholly-owned.

Mitigation Strategies

• Management of working capital, cash flows and the issuance of share capital to mitigate liquidity risk.
• Continued cost-saving efforts, bringing services in-house.
• Investments into new projects to develop and test current and new products.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: GACP, USDA National Organic Program

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ranked highest amongst global cannabis companies in the SAM Corporate Sustainability Assessment (CSA) in the 2020 Sustainability Yearbook