Climate Change Data

Environmental Metrics

ESG Focus Areas

• Pets
• People
• Planet

Environmental Achievements

• The electricity used in the Freshpet Kitchens is 100% wind-powered.
• Freshpet Kitchens is a landfill-free facility.
• Trees are planted to offset carbon emissions.
• Continuously improving the efficiency of Freshpet Fridges and partnering with freight and logistics providers committed to sustainable practices.

Social Achievements

• Beginning in 2019, all full-time hourly team members, with at least one year of service, will be eligible for equity grants.
• Donated over four million fresh meals to pets via shelters, charitable organizations and humane societies.
• Team members get paid time off to pursue activities that help pets in their community.
• Participation in Random Acts of Kindness to improve the lives of pets and pet parents.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Risks Related to Our Business and Industry
• Risks Related to Ownership of Our Common Stock

Mitigation Strategies

• Implementing a growth strategy of expanding distribution by installing new Freshpet Fridges, attracting new consumers to our brand and launching new products.
• Feed the Growth initiative to grow the business through increased marketing investments.
• Plans to expand its manufacturing capacity with a $100 million strategic capital investment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Over 60% of our ingredients are sourced locally from within a 200 mile radius of the Freshpet Kitchens, and 96% are from North America.
• Rigorous standards for ingredient quality and safety.
• Multiple suppliers or identified alternative sources of supply for every ingredient.

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions, natural disasters, pestilences and other natural conditions affecting our operations

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Safe Quality Food Level III

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Pets
• People
• Planet

Environmental Achievements

• Freshpet Kitchens Bethlehem is a landfill-free facility.
• Matched electricity used in Freshpet Kitchens and offices, as well as refrigerators in over 26,000 retail locations, with Green-E Certified renewable energy certificates.
• Latest chiller units use 91% less electricity than older units.
• Ennis, TX facility incorporates on-site solar power and battery micro-grid, wastewater recycling, and advanced heating/cooling technology.
• New Texas distribution center and freight bracket pricing program minimized fuel used to ship products, resulting in reduced logistics costs and environmental footprints.

Social Achievements

• Employee net promoter score of 8.2.
• Donated over seventeen million fresh meals to pets via shelters and charitable organizations.
• Industry-leading compensation, including stock compensation for every employee.
• Industry-leading healthcare offered equitably for every employee.
• Annual equity grants and Key Talent awards.
• Competitive perquisites, including pet insurance, tuition reimbursement, paid parental leave, free healthy snack room and catered lunches.
• 401(k) matching for every employee.
• Rigorous focus on Diversity & Inclusion.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Meeting sustainability targets, goals, and commitments, including due to the impact of climate change.
• Changes in global economic and financial market conditions (inflation and interest rate increases).
• Impact of worldwide or macroeconomic events on business.
• Successfully implementing growth strategy (marketing, capacity expansion).
• Successfully implementing new processes and systems (ERP stabilization).
• Loss of key members of senior management team.
• Allegations that products cause injury or illness or fail to comply with government regulations.
• Loss of a significant customer.
• Entrance of new competitors.
• Effectiveness of marketing and trade spending programs.
• Introducing new products and improving existing products.
• Matching manufacturing capacity with demand.
• Impact of government regulation, scrutiny, warning and public perception.
• Effect of false marketing claims.
• Adverse weather conditions, natural disasters.
• Developing and maintaining brand.
• Effect of potential price increases and shortages on inputs.
• Managing supply chain effectively.
• Global or local pandemics.
• Failure of information technology systems.
• Actions of activist stockholders.
• Volatility in the price of common stock.

Mitigation Strategies

• Implementing marketing strategy.
• Expanding and maintaining brand loyalty.
• Partnering with customers to secure space for Freshpet Fridges.
• Developing new product lines and extensions.
• Partnering with distributors.
• Competing effectively in multiple classes of retail.
• Building capacity to meet demands (Freshpet Kitchens expansion).
• Cost management and price increases to mitigate input cost increases.
• Reduced logistics cost as a percentage of net sales, decreased cost related to the ERP implementation, and increased leverage on depreciation and share-based compensation as the business scales.
• Voluntary recall of a single lot of a particular brand due to potential salmonella contamination.
• Leveraging distribution network to improve customer service levels and decrease distribution costs.
• Investing in information technology systems and cybersecurity.
• Engaging with activist stockholders (Cooperation Agreement).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Building long-term supplier and farmer partnerships to source healthy and sustainable ingredients.
• Sourcing raw ingredients within a 300-mile radius of Freshpet Kitchens.
• Using multiple suppliers or identifying alternative sources of supply for every ingredient.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes, technology changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Safe Quality Food Level III

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed