Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Limited operating history in the cannabis industry.
• Risks associated with investing in pre-revenue Streaming Partners.
• Lack of control over the operations of Streaming Partners.
• Potential for non-compliance with regulations.
• Product liability risks.
• Volatility in the market price of shares.
• Competition in the cannabis industry.
• Risks inherent in agricultural operations.
• Equity price risk from holding equity investments.
• Risks associated with investing in private companies and illiquid securities.
• Risks of expansion into foreign jurisdictions.

Mitigation Strategies

• Conducting due diligence on Streaming Agreements.
• Securing funding for upfront payments for Streaming Agreements.
• Closely monitoring the cannabis industry and discussing trends with Streaming Partners.
• Engaging in discussions with management to monitor Streaming Partners without involvement in day-to-day operations.
• Implementing robust internal controls and compliance procedures.
• Maintaining insurance coverage for product liability.
• Actively pursuing new sources of funding.
• Diversifying investment portfolio.
• Implementing risk management strategies for equity investments.
• Establishing clear exit strategies for investments in private companies.
• Conducting thorough risk assessments before expanding into foreign jurisdictions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Governance Achievements

• Established a Board comprised of a majority of independent directors in accordance with National Instrument 52-110 – Audit Committees.
• Adopted procedures to ensure the integrity of internal controls and management information systems; ensure compliance with all applicable laws, rules and regulations; and prevent violations of applicable laws, rules and regulations relating to financial reporting and disclosure, violation of Auxly’s Code of Business Conduct and Ethics and fraud against shareholders.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Named Licensed Producer of the Year at the O’Cannabiz Industry Awards Gala in June 2022.

Climate Goals & Targets

Environmental Challenges

• Rising energy costs impacting cannabis cultivation.
• Competition from the illicit market.
• Restrictions on promotion and marketing.
• Negative publicity or consumer perception.
• Supply chain disruptions (implied, due to general discussion of supply chain risks).

Mitigation Strategies

• Simplified cultivation supply chain through acquisition of Auxly Leamington.
• Streamlining cultivation platform and reducing costs (closure of Auxly Annapolis and Auxly Annapolis OG facilities).
• Internal sales team to improve distribution and promotional expenditures.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Licensed Producer of the Year at the O’Cannabiz Industry Awards Gala (2022)

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Licensed Producer of the Year in 2022