Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Compiled Scope 1 and 2 emissions data for 2021 and 2022 at all production facilities, with third-party verification.
• Advanced plans for carbon capture and sequestration at Pekin campus (700,000 metric tons CO2 annual capacity).
• Installed enhanced protein and corn oil extraction technologies at Magic Valley plant.
• Upgraded GNS system at Pekin campus to produce higher-quality beverage-grade products.
• Doubled corn storage capacity at Pekin campus.
• Installed new, more efficient boilers at Pekin campus, reducing energy use and costs.
• Made significant progress in plans to install a natural gas pipeline at Pekin campus to lower carbon score and monetize biogas.

Social Achievements

• Partnered with Gallup to launch a three-year employee engagement survey and training program.
• Increased diversity year-over-year with strong employee retention.
• Overall median employment tenure of 7 years (compared to 5 years for US manufacturing).

Governance Achievements

• Improved Board and committee diversity (anticipating 40% diverse Board in 2023).
• Evaluated and updated committee charters, broadening scope to include cybersecurity oversight.
• Constituted an ESG Board committee and working group.

Climate Goals & Targets

Environmental Challenges

• Challenging commodity price environment, particularly in the second half of 2022, resulting in negative gross profit margins and negative Adjusted EBITDA.

Mitigation Strategies

• Secured debt financing for up to $125 million to accelerate diversification growth strategies (carbon capture, corn oil production, protein/yeast expansion, renewable natural gas).

Supply Chain Management

Supplier Audits: On-site auditing for critical suppliers to ensure quality and ethical sources.

Responsible Procurement

• Supplier Code of Conduct requiring ethical business practices.

Climate-Related Risks & Opportunities

Physical Risks

• Flood

Transition Risks

• Regulatory changes

Opportunities

• Carbon capture and sequestration, renewable natural gas.

Reporting Standards

Frameworks Used: SASB - Biofuels, TCFD, GRI

Certifications: ISO 9001 (multi-site), Kosher, Gluten-free, Vegan, GMP/HACCP, TfS, SMETA 4-Pillar

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Higher-quality GNS products, enhanced protein and corn oil extraction.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental, Health, Safety and Security
• Supplier Sustainability
• Employee Engagement
• Diversity
• Carbon Footprint Reduction

Environmental Achievements

• Completed Scope 1 & 2 greenhouse gas emissions inventory with third-party verification for 2021 and 2022.
• New 850,000 bushel corn storage silo at Pekin Campus operational, contributing to improved corn procurement costs and plant reliability.

Social Achievements

• Launched a three-year employee engagement program with Gallup.
• Completed first engagement survey in December 2022.
• Focus on diversity in employee recruiting and at the board level.

Governance Achievements

• Strengthened and communicated environmental, health, safety, and security policy and objectives.
• Added consistent standards and details to Code of Ethics and Supplier Code of Conduct.
• Implemented a supplier transparency program with supplier scorecards and on-site auditing.

Climate Goals & Targets

Environmental Challenges

• Extreme natural gas prices and unfavorable market conditions led to temporary idling of Magic Valley facility.
• Commodity price volatility (corn, natural gas, ethanol).
• Potential for supply chain disruptions due to weather events.
• Regulatory changes related to climate change and greenhouse gas emissions.

Mitigation Strategies

• Hedging activities to manage commodity price risk.
• Installation of new high-protein systems and corn oil technology to diversify products and improve margins.
• Initiatives to improve plant efficiency, reliability, and redundancy (corn storage, natural gas pipeline).
• Exploration of carbon capture and sequestration, cogeneration, and renewable natural gas projects.
• ESG initiatives to improve sustainability performance and ethical sourcing.

Supply Chain Management

Supplier Audits: On-site auditing in some cases.

Responsible Procurement

• Supplier Code of Conduct
• Supplier scorecards
• Partnering with SEDEX

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (drought, flooding)
• Water resource limitations
• Higher water temperatures
• River access disruptions

Transition Risks

• Regulatory changes disfavoring natural gas
• Market transition away from combustion fuels
• Costs and regulatory burdens associated with greenhouse gas emissions

Opportunities

• Carbon capture and sequestration
• Cogeneration
• Renewable natural gas production

Sustainable Products & Innovation

• High-protein products
• Corn oil
• Primary yeast
• Renewable natural gas

Environmental Metrics

ESG Focus Areas

• Sustainability
• Carbon Footprint Reduction

Environmental Achievements

• ICP and Pekin plants received the 2024 Bronze Medal Sustainability rating from EcoVadis.

Climate Goals & Targets

Environmental Challenges

• Negative regional crush margins impacting Western production facilities.
• Historic low carbon market pricing at Columbia facility.
• Illinois SAFE CCS Act imposing moratorium on new carbon pipelines.
• Low Carbon Fuel Standard market prices at historic lows.
• Nascent voluntary carbon markets.
• Equipment issues and process challenges at Magic Valley facility.
• Centrifuge limitations at Columbia facility.

Mitigation Strategies

• Temporarily hot-idled Magic Valley facility to minimize losses and expedite equipment installation.
• Restarted Magic Valley facility in July 2024 with system modifications.
• Addressed centrifuge limitations at Columbia facility, increasing capacity utilization.
• Implementing capital improvement projects to diversify revenue streams and improve profitability.
• Working collaboratively with Vault and other parties on CCS project.
• Evaluating the sale of one or both Western plants.
• Accelerated routine maintenance activities at Magic Valley facility to optimize plant efficiency upon restart.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought
• Flooding
• Water resource limitations
• Higher water temperatures

Transition Risks

• Regulatory changes disfavoring carbon-based energy sources
• Transition away from combustion fuels and fuel-grade ethanol blending

Opportunities

• Carbon capture and storage (CCS) project

Sustainable Products & Innovation

• Higher quality specialty alcohols
• Diversity of essential ingredients (corn oil and high protein feed)
• Carbon capture and storage (CCS)

Awards & Recognition

• EcoVadis Bronze Medal Sustainability rating