2021 Promise Impact Report

1% Promise Impact Report 2021

OUR 1% PROMISE We believe

what goes around comes around.

We dedicate 1% of annual net sales to missiondriven efforts that preserve and enhance quality of life for animals, people, and the Earth.

Walking the sustainable walk.

Sustainability, by definition, means meeting the needs of the current generation without compromising the ability of future generations to thrive.

At Earth Animal, our mission is to preserve and enhance quality of life for animals, people, and the Earth - so sustainability is baked into our DNA. We honor our commitment to our mission and sustainability through our 1% Promise.

What is the 1% Promise?

It’s our commitment to use 1% of our annual net sales to strengthen programs that pioneer a more sustainable future for all of us. We invest in a more sustainable future for the pet industry, fund initiatives that improve the sustainability of our internal operations, and donate to efforts helping animals, people, and the Earth.

It’s a promise to have big, bold impact on the world around us. And, every person who purchases an Earth Animal product joins the community of people contributing to a more sustainable future.

It is our promise to you and that’s why you’ll see it on everything we do.

Our 1% promise is designed to quantify our intent as a company that truly cares and ensure we are fully accountable as we strive to lead from the front and by example on what it means to practice good corporate citizenship.

Stewart Shanley, EA CEO

Getting our Paws Dirty

We are a company deeply committed to making an impact. Although 2021 was a strange year for just about everyone, amongst all the craziness, something fantastic happened.

Our 1% Promise for 2021 valued $550,000.

This enabled us to make meaningful progress in many areas and started work on some very important initiatives for the future.

We helped build resiliency in people, alleviate the suffering of at-risk animals, and promote wellness for the environment, including our oceans, through leadership, stewardship, and monetary donations.

Let’s take a look at our sustainability initiatives and accomplishments in 2021 through the lens of our 1% Promise for animals, people, and the Earth.

In 1979, we founded Earth Animal with a purpose of pioneering “Another Way,” a more holistic and humane way to care for all Earth’s animals and the Earth we share, starting with dogs and cats. Although the word “sustainability” was not used 40 years ago, it’s what was at the core of our business.

Our purpose remains focused on animal health and wellness.

We feel sustainability has become a business imperative.

Our commitment to sustainability continues to deepen and is centered around being an advocate and protector for all Earth’s animals, reducing our dependence on factory-farmed animals, mitigating our environmental impact, and using sustainable business practices to drive success and inspire our industry to do the same.

By learning from innovative companies leading the way in sustainability and through our 1% Promise, we aim to create meaningful impact through our business decisions and invite our industry to join us in doing things a better way, a more sustainable way, Another Way. ~ Earth Animal Founders, Dr. Bob and Susan Goldstein

ANIMALS

As a pet wellness company that cares deeply about all animals, we have a fundamental responsibility to consider the lives of animals in our supply chain at every step of the journey. Our commitment is to represent their voice with our actions and make meaningful decisions that have a positive impact on their overall well-being.

We have dedicated a tremendous amount of time this past year to addressing farm animal welfare in our supply chain. Even as a smaller company with limited buying power, we are out to prove that animal welfare and quality food don’t need to be separate conversations. With firm voices and collective action, we can lead our industry towards more humane treatment of farm animals that we rely on to create our products.

Our Animal Welfare Framework is the result of years’ worth of dedication to improving this area of our supply chain. This is a complex issue in our industry with an inherent paradox when using farm animals to feed our companion animals, but we are proud to lead these efforts.

Working with experts in animal welfare from around the world, and with feedback and input from NGO’s and animal rights groups, we finalized a robust framework outlining our goals and a process for transforming our supplier network towards more humane solutions that all center around The 5 Domains.

The 5 Domains of Animal Welfare

This will launch publicly in Q1, 2022 and we invite you to follow our journey on our social channels, but more importantly to reach out and partner with us in these efforts.

While we are confident that our animal welfare framework will transform the quality of life for animals in our current supply chain, our long-term goals are even more ambitious. We envision an industry independent of factory-farmed animals and we are investing to make that happen.

These efforts include research into alternative protein sources like insects and invasive species, studying new plant-based technologies, and being on the forefront of cellular agriculture initiatives. This work is critical to the future of our company and the future of animal welfare in the pet industry.

A Local Story: The Little Red Barn Project “Innovative advancements in alternative proteins for human consumption have proven what’s possible and inspired us to lead our industry towards more sustainable protein solutions.”

- Susan Goldstein, EA Founder

In 2021 we made a commitment to invest 5% of our profits to research and development of alternatives to factory-farmed animals.

What is possible in the world of alternative proteins? That’s what we want to find out, and to do so we’ve launched an exciting partnership with The Better Meat Company, leaders in plant-based protein research and development.

This collaboration is designed to find reducetarian and meat-free protein alternatives for our favorite products that are as healthy and delicious as their animal protein counterparts. This is central to achieving our goal of reducing reliance on industrial animal agriculture and reducing our overall environmental impact – a true win-win!

When Peter Wormser, the architect who designed our flagship store in Westport, CT, called and said he needed assistance fixing a goat barn at a farm animal rescue nearby, we jumped at the chance.

The Wakeman Town Farm Sustainability Center is more than just a simple farm animal rescue.

They strive to bring the community together with a variety of programs for young and old alike. They offer workshops about gardening, cooking, sustainability, wellness, and the arts. They offer other educational programs including their “little Farmers” project, and programs for the differently-abled community.

The Little Red Barn will be a multipurpose space that will be used for horticulture classes and workshops, barn suppers, plays and performances, and lots of other artistic and farm-friendly endeavors.

During the second half of 2021, our retail store, with the generous support of their loyal customers, raised $20,000 for this project to help out our local community.

Giving back to animal rescues and shelters is in our nature, it’s who we are as animal lovers. In 2021, we donated over $230,000 worth of products to rescues, shelters, and organizations that help people experiencing homelessness to care for their companion animals. In addition, we donated over $30,000 to these organizations directly.

PEOPLE

Our people are the heart of Earth Animal and we invested heavily in our employees and in our communities in 2021.

Our employees All teams went to a hybrid or remote work model and we gave each employee a stipend to outfit their home offices.

We tested a 4-day work week, we instituted Summer Hours every Friday, year-round, and we have meet-less Mondays so employees start their week with dedicated focus time.

Work-life balance has become more important than ever as we continue to evolve to find working solutions for all employees.

Diversity, Equity, and Inclusion (DEI) Like many industries, the pet industry is working to increase diversity. The first step is admitting we have a problem, the second is addressing it. DEI is important to Earth Animal and while we have a long way to go, we’ve taken measurable steps to increase diversity and foster a deeper understanding of related issues.

Working with the Equity Project, we invested in two workshops with Dr. Dwinita Mosby Tyler to talk through DEI in the modern workforce and brainstorm ideas for generating more diversity in the industry.

This issue isn’t going to be solved overnight and we will continue to make investments in this area.

Company Volunteer Efforts In 2021, we continued our annual holiday giving tradition with over 75% of our employees participating in our “Share a Little Tenderness” campaign.

Each employee was given 5 cases of our Herbed Chicken Tenders to donate to a local animal rescue. We had 50 employees take over 4,000 bags of treats to shelters and pet rescue organizations across the US and UK. Our corporate office held a volunteer day to pack boxes at a local food pantry – helping to feed families in need across the state this holiday season. Our sign-up filled up fast as we were only able to take 20 employees due to COVID, but we already have plans to expand these efforts worldwide in 2022.

Philanthropy isn’t just for our furry friends.

In addition to the investments within our own company, we strive to help people around the world through volunteer efforts, donations, or other support when needed. Struggle in life comes at everyone in different ways, but we want to alleviate some of the burden.

In 2021, we donated over $40,000 in funds to social support in the US and UK. The recipients included prison reform groups, mental health organizations, food banks, health and justice organizations, and suicide prevention groups.

American Foundation for Suicide Prevention

Many people around the world struggle on a daily basis and the pandemic made things many times worse. We are proud to support the American Foundation for Suicide Prevention in their efforts and made financial contributions to help.

American Independent Business Alliance (AMIBA)

AMIBA is a nationwide movement that supports locally-owned, independent businesses, encourages local purchasing, and addresses the competitive disadvantages that independent businesses often experience due to policies and economic structures. We partnered with AMIBA to drive local support and encourage shoppers to look in their own community before venturing online.

Child Cancer Charity UK

At this point it seems like everyone knows someone who has had cancer. Young or old, cancer doesn’t discriminate. We are proud to support research and prevention efforts worldwide, especially ones that affect the most vulnerable populations.

Defy Ventures

Defy’s programs enable one of America’s largest forgotten communities, reformed prisoners, to defy the odds by giving them new skills, new connections, and a new confidence to succeed in an economically independent life. Earth Animal made financial contributions and our CEO has mentored some of these individuals who are working to change their lives.

Katal Center for Justice

Katal works to strengthen the people, policies, institutions, and movements that advance equity, health, and justice for everyone. We are committed to supporting partners like Katal to increase awareness about diversity and support it within our industry.

A Local Story: The Mitten Project To support our local food bank, CT Foodshare, we raised more than $40,000 through our annual Mitten Project fundraiser.

The project was created in 2007 and has raised more than $100,000 to date.

THE EARTH

We only have one planet to call home and if we don’t take care of it, it may not take care of us for very much longer. We strive for real impact and that means tackling the big issues, but we can’t do it alone.

As we improve our own operations, we strive to partner with like-minded organizations and provide a model for other brands to emulate. Working with the Pet Sustainability Coalition (PSC), we identified the impact of plastics on our planet.

Addressing Plastic Packaging.

Plastic packaging is one of the biggest environmental threats from our industry with over 300mm lbs of plastic packaging ending up in landfills every year. We are committed to addressing the global impact of our own company while modeling a way for others in the industry.

Our work in 2021 focused on 5 key areas:

1.

Forging partnerships with the Sustainable Packaging Coalition (North America) and On Pack Recycling Label (UK) SPC/OPRL – How2Recycle

With simple actions like adding clarifying language to a label stating which packaging can be recycled and how, we can reduce our impact tremendously.

In 2021, we started adding How2Recycle information to each new packaging run and it will be on all packaging by 2023.

2.

Buying carbon removal tokens from The Nori Carbon Removal Marketplace

We purchased 252 tons of carbon removal tokens – enough to offset the entire yearly emissions of 16 people!

We allocated these credits to offset the corporate travel of entire 70-person team.

4.

Transitioning away from plastic packaging

Historically, packaging has been made of multi-layered, multi-material plastics that are very difficult to recycle.

However, new technologies have changed the game.

3.

Participating in the PSC Packaging Task Force

5.

Establishing plastics-neutrality through rePurpose Global

Along with leaders from some of the top brands in the country, we are charged with coming up with ways to address the plastic packaging problems in our industry and bring companies together to collaborate on solutions.

Whenever new designs are implemented or mistakes happen, it results in excess packaging having to be recycled. In these situations, we partner with rePurpose Global to We started transitioning all new offset the environmental impact. packaging to a mono-structure In 2021, we offset 12,000 lbs. film that can be recycled with We have already expanded this store take-back programs, partnership in 2022 and have and we are committed to committed to remove the entire transitioning all packaging to a amount of plastic from the recyclable option by 2025. environment that we put into it through our product packaging.

For our company, the clue is in our name.

We are called Earth Animal for a reason, and as such we want to play our part in improving the wellness and longevity of not only Earth Animals, but the planet that sustains us. In addition to it being the right thing to do, our view is that there is a compelling business case for a company operating framework that prioritizes purpose in equal measure to commercial success. ~ Stewart Shanley, EA CEO

Tackling the Big Issues

Flexing Forward: A Case Study Using Collective Action To Reduce Industry-Wide Impact This industry-first, return-toretail packaging take-back pilot program was launched during the height of the pandemic and has been moving forward since.

The program, sponsored by Earth Animal, PSC, and Pet Food Experts, is testing the feasibility of establishing a take-back program across the country, designed to recycle multiple types of different packaging, all in one process.

This was not possible 5, or even 2 years ago – but technology advancements promise new opportunities. We collected over 6,000 lbs of material in a 5-month span in the Pacific Northwest and are currently testing the recycled content to see what can be made of it, learning more in the months ahead. Our goal is to create products to be donated to animal shelters and rescues across the country.

We donated over $40,000 to organizations fighting for Mother Earth. These efforts helped with natural disaster relief, planted over 3,000 trees, cleaned up our oceans, and helped keep our National Parks running.

MEMBERSHIPS Pet Sustainability Coalition (PSC)

As Icon members of the Pet Sustainability Coalition, we have access to an incredible number of experts across a wide range of sustainability initiatives, and this allows us to spread our message within the industry quickly and efficiently to maximize our efforts. The Pet Sustainability Coalition has tremendous resources and together, we were able to figure out the biggest impact areas of our company from a sustainability perspective and explore ways to lessen our impact in 2022 and beyond.

Sustainable Packaging Coalition (SPC)

We have a goal to decrease our output to landfill and one of the largest opportunities to reduce our impact is through our packaging efforts.

Partnering with the SPC allows us to add the How2Recycle Icon to our packaging, clearly and efficiently telling consumers how to dispose of our packaging after use.

The Global Animal Partnership (G.A.P.)

The Global Animal Partnership is a nonprofit which seeks to promote the welfare of farmed animals by rating the welfare standards of various farmed animal products.

Ocean Wise

Overfishing is a monumental, global issue. Ocean Wise Seafood is an ocean conservation program that empowers consumers and businesses to choose sustainable seafood options that support healthy oceans, today and into the future. Partnering with Ocean Wise shows our dedication to responsible sourcing and provides trust that our consumers can believe in.

Clean Label Project (CLP)

This national non-profit’s mission is to bring truth and transparency to food and consumer product labeling. We’ve partnered with CPL to provide further transparency in our products by testing for heavy metals, pesticide residues, and plasticizers.

2022: WHAT’S TO COME

1.

We’ll continue our work towards complete transparency into our supply chain and working towards institutionalizing our efforts through BCorp status.

2.

Building off 2021’s efforts in plastic packaging and animal welfare, we will continue to work towards reducing our overall environmental impact.

Words Meet Action:

Our Transition to a Public Benefit Corporation (PBC) We’re more than just another brand serving animals and their parents. We have a commitment to improving the lives of animals, people, and the Earth.

In 2021, we put our words to action and changed the entire corporate structure of our company to become a Public Benefit Corporation.

A Global Story: StreetVet Our 1% Promise knows no borders.

In 2021, our UK Team established a partnership with StreetVet, a charity whose goal is to help keep animals with their loving families, regardless of their financial or living situation. Specifically, they provide free critical veterinary care to the pets of people experiencing homelessness across the UK.

This means that instead of only considering fiduciary responsibility, our company MUST provide a real, quantifiable benefit to the public.

We chose to partner with StreetVet because we know the benefits of a companion animal. They provide comfort, joy, affection, and companionship. And those in need should not struggle in their desire to keep them close, happy, and healthy.

As Earth Animal continues to grow internationally, our 1% Promise will grow

in kind.

3.

With an amplified voice, we will continue to speak for those unable to do so themselves and champion work to improve the lives of all Earth Animals.

Thank you for being an

We believe

what goes around comes around.

We dedicate 1% of annual net sales to mission-driven efforts that preserve and enhance quality of life for animals, people, and the Earth.

Follow our social channels for updates, new program launches, and info about the exciting programs we have in store for 2022!