Climate Change Data

NATURE’S SUNSHINE PRODUCTS, INC.

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Renewable Energy Share:100% at manufacturing facility in 2022

ESG Focus Areas

  • Sustainability

Environmental Achievements

  • Achieved 100 percent renewable energy at our manufacturing facility during the year ended December 31, 2022

Social Achievements

  • Annual scholarship program for multicultural students at the University of Utah in the amount of $0.2 million.
  • Leadership development program designed to help employees develop leadership skills and obtain executive coaching over a three-year period.
  • Competitive wage and benefits package building loyalty and engagement in Company performance.
  • Hybrid work model that recognizes the evolving needs of workers and allows them to build a hybrid work schedule providing greater flexibility for their personal needs.
  • A wellness rewards program that rewards healthy behaviors such as healthy eating, exercise, and wellness ambassadorship.

Governance Achievements

  • Creation of a Compliance Committee of the Board of Directors in 2014 to oversee efforts with respect to operational compliance.

Climate Goals & Targets

Short-term Goals:
  • 50 percent reduction of greenhouse gas emissions for Scope 1 & 2 by 2025
  • Zero waste at all distribution centers by 2025
  • 35 percent waste reduction at our owned manufacturing facility by 2025

Environmental Challenges

  • Experienced complications in obtaining and maintaining adequate sources of raw materials supply during the years ended December 31, 2022 and 2021.
  • Conflict between Russia and Ukraine negatively impacted operations in both countries and the region.
  • High inflation and other difficult economic conditions.
  • Ongoing coronavirus pandemic and the responses thereto around the world.
  • Supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand.
Mitigation Strategies
  • Attempt to ensure the availability of many of our raw materials by contracting, in advance, for our annual requirements.
  • Recorded a pretax charge of $1.0 million, primarily related to the impairment of inventory due to the conflict in Ukraine.
  • Monitoring the social, political, regulatory and economic environment in Ukraine and Russia, and will consider further actions as appropriate.
  • Taking actions to mitigate the effects COVID-19 may have on our business
  • Implementing stringent quality control procedures to verify that our contract manufacturers have complied with our specifications and standards.

Supply Chain Management

Responsible Procurement
  • Collaborating with growers and suppliers that protect and care for the natural resources they farm and harvest along with the economic and social interests of their local communities.

Climate-Related Risks & Opportunities