Climate Change Data

Paine Schwartz Partners, LLC

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:See Appendix 1
Scope 1 Emissions:See Appendix 1
Scope 2 Emissions:See Appendix 1
Scope 3 Emissions:See Appendix 1
Renewable Energy Share:See Appendix 1
Total Energy Consumption:See Appendix 1
Water Consumption:See Appendix 1
Waste Generated:See Appendix 1
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Productivity and Sustainability
  • Health and Wellness
  • Diversity, Equity, Inclusion & Belonging (DEI&B)
  • Climate Change
  • Nature
  • Food Safety
  • Supply Chain
  • Employee Wellbeing
  • Human Rights

Environmental Achievements

  • Moved into new LEED Platinum certified office with sustainably-sourced furnishings
  • Reduced energy intensity by 11% and fuel intensity by 43% since 2021 (AgBiTech)
  • Recycled 316 tons of trays (AgBiTech)
  • Companies generated more than 3.5K+ MWh of renewable energy
  • Companies saved 1M+ lb of cardboard and 2M+ lb of plastic
  • Companies recycled or composted 48% of total waste
  • Reduced water intensity efficiency by nearly 10 million gallons (Lyons Magnus)
  • 40% rPET bottles (by weight) (Suja Life)
  • Replaced more than 1,100 tons of virgin cardboard with recycled corrugate (Urban Farmer)
  • 74%+ waste diversion rate (Urban Farmer)
  • ~45% solar-powered headquarters (Verisem)

Social Achievements

  • Hired Head of Sustainability
  • Hired women into seven of the last ten senior roles
  • Formalized LP Sustainability Council for Fund VI and held first meeting
  • Awarded “Impact Firm of the Year (Food System)” by New Private Markets and ten Agri Investor awards
  • Finalized DEI&B policy and roadmap
  • 92% of majority-owned companies have one or more directors on their board that are non-male or non-white
  • 11 companies conducted employee efforts to reduce the environmental impact of their operations
  • Average annual employee attrition was 23% and average voluntary attrition was 14%
  • 12 companies outperformed their sector benchmark for one or more safety incident rate
  • 6 companies held dedicated DEI&B trainings
  • Reduced employee turnover from 27% in 2022 to 17% in 2023 (Axiota)
  • Achieved 14% decrease in TRIR from its 2021 baseline (Lyons Magnus)
  • Reduced diesel consumption by 30% (Urban Farmer)
  • Reduced employee attrition from 78% in 2022 to 42% in 2023 (Urban Farmer)
  • Donated 300 hours of community service (Suja Life)

Governance Achievements

  • Became an Early Adopter of the Taskforce on Nature-related Financial Disclosures (TNFD)
  • 100% of companies have one or more independent directors on their board
  • CEO compensation linked to sustainability goals for majority-owned businesses
  • Developed a portfolio-wide risk assessment program
  • Launched Fund VI LP Sustainability Council

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (aspirational)
Medium-term Goals:
  • Achieve Year 2 Certification in Indiana and apply for 4R Nutrient Stewardship recognition in other states (AdvAg)
  • Develop a high concentrate product that would mean significantly less water transport (AgBiTech)
  • Develop and advance a sustainability strategy, including appropriate governance infrastructure (Portfolio Company)
  • Develop and refine models to measure food waste reduced, water saved, and GHG emissions avoided (Portfolio Company)
  • Conduct a lifecycle analysis to demonstrate the full positive impact of its products (Axiota)
  • Implement a 3-year plan aimed at sustainability goals (Elemental Enzymes)
  • Implement holistic supply chain management across all business units (Hendrix Genetics)
  • Expand its DEI&B strategy with a focus on retention, employee engagement, and building its safety culture (Elemental Enzymes)
  • Developing system solutions in its supply chain to support global expansion (Elemental Enzymes)
  • Leverage existing field study data for select products to build out impact metrics (Elemental Enzymes)
  • Transition 40% of its roll-fed product labels to sustainable pressure sensitive labels (Suja Life)
  • Upcycle 50,000 pounds of waste in the first year (Suja Life)
  • Establish a reduction plan for greenhouse gas emissions (Urban Farmer)
  • Launch Employee Resource Groups (ERGs) (Urban Farmer)
  • Launch a buddy/mentor program for new hires (Urban Farmer)
  • Conduct a pay equity analysis (Urban Farmer)
  • Prepare for mandatory sustainability reporting coming in 2026 (Verisem)
Short-term Goals:
  • Achieve Year 2 Certification in Indiana (AdvAg)
  • Apply for 4R Nutrient Stewardship recognition in other states (AdvAg)
  • Formulate a high concentrate product to reduce water transport (AgBiTech)
  • Reduce refrigerated truck mileage in Brazil (AgBiTech)
  • Conduct a new third-party assessment on at least one product (AgroFresh)
  • Expand environmental assessment model to feedlots in Canada and South Africa (Axiota)
  • Develop a formal health and safety program (Elemental Enzymes)
  • Conduct a double materiality analysis (Hendrix Genetics)
  • Conduct an employee engagement survey (Hendrix Genetics)
  • Conduct a third-party review to better articulate the environmental impacts of its products and operations (HGS BioScience)
  • Be nearly zero waste by 2025 (HGS BioScience)
  • Develop a formal DEI&B policy (HGS BioScience)
  • Explore sustainable office initiatives (Kynetec)
  • Increase supplier diversity (Lyons Magnus)
  • Increase engagement between teams (Lyons Magnus)
  • Conduct a pay equity analysis (Urban Farmer)
  • Participate in the social responsibility audit (Urban Farmer)
  • Develop compensation-linked CEO goals for sustainability and DEI&B (Verisem)

Environmental Challenges

  • Climate change impacts on agricultural yields (rising temperatures, increased pests, extreme weather)
  • Evolving food and agriculture policy
  • Shifts in consumer expectations towards climate-friendly products
  • Supply chain disruptions due to extreme weather
  • Food safety and quality risks
Mitigation Strategies
  • Climate risk assessment as part of due diligence
  • Annual Sustainability Reporting Program
  • Portfolio-wide risk assessment program
  • Targeted engagement with portfolio companies on sustainability value creation
  • Quarterly webinars for portfolio companies on key sustainability topics
  • Development of a decarbonization strategy
  • Investment in businesses that increase agricultural efficiency, reduce chemical inputs, improve soil health, reduce food waste, and produce healthier food
  • Establishment of Agricultural Decarbonization and Nature Hunting Ground
  • Structured review process for food safety and quality risk assessment

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier sustainability requirements
  • Focus on increasing supplier diversity (Lyons Magnus)

Climate-Related Risks & Opportunities

Physical Risks
  • Rising temperatures
  • Increased pests
  • Extreme weather
Transition Risks
  • Policy and regulation changes
  • Shifts in consumer expectations
Opportunities
  • Investment in climate solutions
  • Increased agricultural efficiency
  • Reduced chemical inputs
  • Improved soil health
  • Reduced food waste

Reporting Standards

Frameworks Used: TCFD, UN SDGs, Impact Management Project (IMP), IRIS+, TNFD

Certifications: LEED Platinum

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 2: Zero Hunger
  • SDG 6: Clean Water and Sanitation
  • SDG 7: Affordable and Clean Energy
  • SDG 8: Decent Work and Economic Growth
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 15: Life on Land

Investments support progress toward these SDGs through various initiatives

Sustainable Products & Innovation

  • Biological pest control products (AgBiTech)
  • Shelf-life extension solutions (AgroFresh)
  • Injectable trace minerals and probiotics (Axiota)
  • Enzymes and biochemicals for agriculture (Elemental Enzymes)
  • Improved genetics for animal breeding (Hendrix Genetics)
  • Humic and fulvic acid products (HGS BioScience)
  • Cold-pressed juices and wellness shots (Suja Life)
  • Gluten-free frozen foods (Urban Farmer)
  • Microbial control solutions (Sterilex)

Awards & Recognition

  • Fund Manager of the Year
  • Equity Fundraising of the Year
  • Deal of the Year
  • Impact Firm of the Year (Food System)