Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Capital Resources
• Diversity, Equity, and Inclusion

Social Achievements

• Women and people of color comprise 51% of the Company’s workforce; 44% in management and 29% in senior management. People with disabilities and military veterans make up 11% and 3% of the Company’s workforce, respectively.

Governance Achievements

• The Company’s Chief Executive Officer (“CEO”) or any other individual appointed by the CEO oversees, maintains, and implements the Company’s compliance program and personnel.

Climate Goals & Targets

Environmental Challenges

• The Company recognizes that climate change presents both risks and opportunities to our business. We recognize that climate-related risks may include changing weather patterns, water scarcity, and regulatory developments related to GHG emissions and energy consumption.
• Due to the classification of cannabis as a Schedule I controlled substance under the CSA, third parties may fail to establish or maintain business relationships with us, which could have a material adverse effect on us, and banks and other financial institutions which service the cannabis industry are at risk of violating certain financial laws, including anti-money laundering statutes, and if we do not have access to any banking system in the jurisdiction in which we operate, our business and operations could be materially adversely affected.
• Significant indebtedness and the need to raise additional capital to continue operations.

Mitigation Strategies

• The Company is committed to playing our part in mitigating climate change by monitoring our greenhouse gas (GHG) emissions, minimizing our environmental footprint, and promoting sustainable practices within our operations.
• The Company’s compliance program emphasizes security and inventory control to ensure strict monitoring of cannabis and inventory from delivery by a licensed distributor to sale or disposal.
• The Company’s operating plans for the next 12 months include (i) increasing revenue growth from the sale of existing products and the introduction of new products across all operating segments; (ii) reducing production and operational costs as a result of efficiencies in cannabis operations; (iii) reducing supply chain costs; (iv) reducing and delaying overhead and other certain expenditures; and (v) obtaining other financings as necessary.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns, water scarcity

Transition Risks

• Regulatory developments related to GHG emissions and energy consumption

Opportunities

• Adopting sustainable practices, developing innovative solutions, and embracing renewable energy sources