Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Compliance

Environmental Achievements

• Not disclosed

Social Achievements

• 23% reduction in OSHA recordable injuries from 2018 to 2019

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Difficult and costly 2018 harvest due to weather (rain, snow, frost), resulting in nearly 3,000 frozen acres left unharvested.
• Trade war curtailed beet pulp pellet sales to China.
• Soggy field conditions and rain events hampered 2019 harvest, leaving about one-third of the crop stranded due to weather.

Mitigation Strategies

• Prudent handling of frost-damaged beets in 2018 (allowing time to heal before harvesting).
• Implementation of a system to receive a set volume of frost-damaged beets for priority processing in 2019.
• Employee-driven effort to mitigate risks to maintain high quality sugar delivery and record low customer complaints.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Potential for federal or state regulation relating to climate change policies, increasing energy and operating costs and potentially disadvantaging the domestic sugar market compared to imports.

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

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Achieved a record low injury rate for the third consecutive year thanks to enhanced safety training and clear communication.

Governance Achievements

• Implementing an Active Farmer Policy to ensure shareholders are active participants in sugarbeet production.

Climate Goals & Targets

Environmental Challenges

• Warmer than average temperatures during the first half of the storage season delayed ventilation and increased storage losses due to increased respiration.
• Extreme temperature swings created poor storage conditions resulting in high invert levels in beets at Sidney Sugars, contributing to lower slice rates and extraction.
• Dry spring and high wind events made stand establishment a challenge for the 2021 sugarbeet crop.
• COVID-19 caused a reduction in restaurant and school consumption of meat and dairy products, reducing overall demand for feed.

Mitigation Strategies

• Handled the challenges of above-average temperatures and beet quality well.
• Higher than normal sugar content in beets at Sidney Sugars boosted sugar recovery per ton, contributing to a profitable year.
• The 2021 sugarbeet crop responded nicely to much-needed precipitation in August and September, producing a better than expected crop.
• Proactively protecting people and products during the COVID-19 pandemic; ready to reenact protective policies if needed.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Potential federal or state regulation relating to climate change policies, increasing energy and operating costs.

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: CliftonLarsonAllen LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Workforce Development
• Community Outreach
• Environmental Sustainability
• Safety

Environmental Achievements

• Increased water treatment capacity at Crookston to meet higher environmental standards
• Completed factory upgrades and infrastructure investments to improve safety and efficiency

Social Achievements

• Secured a new collective bargaining agreement with BCTGM Union, securing higher wages and improved benefits
• Awarded 100+ scholarships of $1000 each to students in the Red River Valley
• Awarded $200,000 in grants annually across the valley
• Thousands of hours of volunteer support from American Crystal to their communities
• Combined employee giving and matching donations from the company totaled over $250,000 to the United Way

Governance Achievements

• New collective bargaining agreement with BCTGM Union

Climate Goals & Targets

Environmental Challenges

• Fierce competition for hourly staffing
• Difficult sugarbeet contracting due to grower contract negotiations and pressure from competing crops
• Supply chain issues including limited truck capacity, materials inflation, and shortages of key materials
• Abnormally wet and cool spring delaying the 2022 growing season
• Extreme wind causing over 20,000 acres to be replanted
• Foreign and domestic policy challenges affecting market prices for commodities and inputs

Mitigation Strategies

• Major focus on recruiting to handle abundant crop
• Grower contract agreement for 2022 crop
• Effective sugar program management by the USDA
• Construction of Sugar Dome II in Montgomery, Illinois to double storage capacity
• Acquisition of the Chicago Melt Station for new market access
• Authorization of 52,000 extra acres for planting through Targeted Acres Program (TAP)
• Active engagement in policy discussions to address concerns related to the 2023 Farm Bill

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Climate change policies increasing energy and operating costs