Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacts on employees, business continuity, and community support; potential for material adverse effects if a significant number of employees are impacted by the virus.

Mitigation Strategies

• Implemented various preventative measures to reduce the spread of the virus, resulting in minimal disruption to production, supply, and distribution chains; a portion of the workforce continued to work remotely.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Liquidity risk: sustained losses since inception and may require additional capital in the future.

Mitigation Strategies

• Managing capital structure, raising equity or debt capital from investors to meet liquidity needs, reducing spending, extending payment terms with suppliers, liquidating assets, suspending or curtailing planned programs.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• High taxes and fees in the California cannabis market.
• Extensive regulation in the California cannabis market.
• Heavy competition in the California cannabis market.
• Weakened consumer demand in the California cannabis market.
• Federal illegality of cannabis in the US, impacting access to banking and financing.
• Application of Section 280E of the Internal Revenue Code, limiting tax deductions for cannabis businesses.
• Potential for heightened scrutiny by regulators due to the federal illegality of cannabis.

Mitigation Strategies

• Utilizing scale in cultivation and distribution to achieve economies of scale.
• Building superior brand awareness and loyalty.
• Adhering to standard operating policies and procedures to ensure compliance with state and local laws.
• Engaging in the regulatory and legislative process to advocate for favorable changes.
• Seeking additional financing through equity issuances and debt financing arrangements.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• Carbon Footprint Reduction

Environmental Achievements

• Glass House Group's cannabis greenhouses outperform industry competitors by 10-90% in nearly every efficiency measure evaluated. Energy Productivity, Electric (g/kWh): GH yields approximately 7 times more per unit of electricity used than standard greenhouses. Facility Energy Intensity (kWh/SF): GH uses approximately 88% less electricity per SF than typical greenhouses and 93% less than indoor. Production Efficiency (grams/SF): GH produces 180% more yield per SF than industry standard greenhouses. Carbon Productivity (kgC02/kg flower): GH produces 67 more cannabis per unit of carbon than other greenhouses, and 96% more than indoor facilities. Glass House Greenhouses appear to use 68% less carbon per gram of flower than other greenhouses, and 96% less than indoor operations.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High resource use in regulated cannabis cultivation is gaining attention from state-level policymakers who are looking to regulate limits on energy use. Customers demand more information about the source of their products.

Mitigation Strategies

• Voluntarily cataloguing and disclosing energy use and carbon footprint allows Glass House to weigh in with regulators and policymakers and win dedicated customers with strong values. Establishing a baseline and assessment process to set realistic goals or make effective investments in energy efficiency.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed