Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Community Engagement
• Employee Well-being
• Safety
• Responsible Supply Chain

Environmental Achievements

• Reduced waste through recycled steel grit in railcar blasting and painting.
• Developed and launched "SmartPhos® DG" to address nutrient runoff.
• Used waste wood gasification at ELEMENT, LLC to reduce energy consumption.
• Converted fuel source for grain elevator dryer from fuel oil to natural gas.
• Removed underground fuel storage tanks and replaced with aboveground, double-walled tanks.

Social Achievements

• 82% employee participation in workplace culture survey.
• 71% of employees reported a sense of meaning and purpose in their work.
• Implemented Cardinal Safety Rules and focused on high-risk operations.
• Launched eCoaching program for employee wellness.
• Expanded fitness center options and introduced a prediabetes program.

Governance Achievements

• Added oversight of ESG activities to a Board Committee charter.
• One new independent director joined the Board in 2018 and 2019.
• Robust set of written policies applicable to all stakeholders.
• Standards of Business Conduct and Response Program implemented.
• Harassment Free Workplace Policy with mandatory annual training for supervisors.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and community needs.
• Nutrient runoff and its impact on water quality.
• Maintaining high safety standards across operations.

Mitigation Strategies

• Created executive team to monitor and manage COVID-19 response.
• Implemented remote work and safety protocols.
• Developed and implemented Cardinal Safety Rules.
• Increased safety professionals and training.
• Invested in new safety management systems and technology.

Supply Chain Management

Responsible Procurement

• Sourcing of organic and non-GMO products.
• Collaboration with customers on sustainable farming practices.
• Identity preservation for Hudson, Michigan facility sourcing.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• SmartPhos® DG

Awards & Recognition

• Feed Factors Limited won West London Business Awards 2020 for Responsible Supply Chain Company of the Year and Clean Tech Company of the Year.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Calculated energy usage across North American facilities and reported energy and GHG emissions trending.
• Calculated 2021 GHG Scope 1 and 2 impact (approximately 975,000 mtns CO2e).

Social Achievements

• Implemented safety programs with emphasis on preventing serious injuries and fatalities.
• Provided direct financial and in-kind support to emergency response organizations.
• Encouraged employee community engagement through volunteering and donations.
• Launched The Andersons Training Journeys for new employees.

Governance Achievements

• Issued Human Rights Policy addressing human rights, fair employment, anti-slavery, and human trafficking.
• Reissued Anti-Corruption, Anti-Bribery Compliance Policy.
• Published Corporate Governance Guidelines.

Climate Goals & Targets

Environmental Challenges

• Difficulty in calculating Scope 3 GHG emissions due to the complexity of the agricultural supply chain.
• Need for further refinement of water usage and waste generation data.

Mitigation Strategies

• Working to capture data related to various elements of the supply chain.
• Continuing to review operations to locate all water usage by source and refine waste generation data.
• Partnering with suppliers and end-users to advance sustainable sourcing projects.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• 2
• 6
• 8
• 13
• 15
• 17

Awards & Recognition

• Queen’s Award for Enterprise: Sustainable Development 2022

Environmental Metrics

ESG Focus Areas

• Climate change
• Supply chain sustainability

Environmental Achievements

• Reported Scope 1 and 2 greenhouse gases emissions in annual Sustainability Report
• Participating with customers in pilot sustainable sourcing projects

Social Achievements

• Maintains an open-door policy that encourages candid conversations between employees and any level of leadership about job-related concerns without fear of reprisal.
• Regularly solicits employee feedback through informal pulse surveys and formal engagement surveys.
• Offers several resources to help employees expand their business knowledge and leadership skills, including merchandising and finance development programs.
• Partners with a wellness vendor to offer a comprehensive healthy lifestyles program to employees and their spouses.

Governance Achievements

• Audit Committee of the Board of Directors oversees the Company’s cybersecurity program and the steps taken by management to monitor and mitigate cybersecurity risks.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical instability and conflicts
• Increased costs of inventory and prices of raw material
• Adverse weather conditions, both local and worldwide
• Transition risks and physical risks related to climate change
• Compliance with evolving environmental, social and corporate governance (ESG) regulations including climate change
• Cybersecurity incidents

Mitigation Strategies

• Established counterparty credit limits and various monitoring agreements
• Ability to divert cargo in transit to another counterparty, country, or region
• ERM program and other efforts to expand responsible practices to reduce environmental risks
• Working with third parties such as Supplier Leadership on Climate Transition to develop Scope 3 data
• Dedicated cybersecurity program designed to protect the confidentiality, integrity, and availability of its assets from cybersecurity threats
• Business continuity plans for critical systems
• Cybersecurity insurance

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Decreased demand for biofuels due to electrification

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