Responsible Growth for a Healthier World: It's in our Roots by Grimmway Farms

Responsible Growth for a Healthier World IT’S IN OUR ROOTS Inaugural Report on Environment, Social and Governance Actions

Table Of Contents

A WORLD (LITERALLY) OF CARROTS

A MESSAGE FROM JEFF HUCKABY

ENVIRONMENTAL STEWARDSHIP

Leadership in Organics

Controlling Our Carbon Footprint

Energy Conservation

Smarter Water Usage

Reduce, Reuse, Recycle

Responsible Farming Practices

Farming and Field Innovations

Operations

SOCIAL IMPACT

Quality Assurance and Food Safety

Employee Health and Wellness

Our Response to COVID-19

Diversity, Equity, and Inclusion

Philanthropy and Community Partnerships

Education and Empowerment

Social Responsibility in Our Supply Chain

CORPORATE GOVERNANCE

Stakeholder Engagement and Communications

Face-to-Face: CEO Annual Town Halls

Ethical Labor Practices

Leadership

NOTES ON THIS REPORT

A WORLD (LITERALLY) OF CARROTS If you laid out all of the carrots Grimmway Farms grew in 2020 end-to-end, they would circle the Earth 123 times. We can think of no more vivid illustration of the vital role we play in feeding the world today.

It’s been a remarkable journey from humble beginnings as a small produce stand, to our move and growth in Kern County catapulted by a love for “baby carrots,” to our pioneering of the organic movement, and our expansion to growing regions throughout the U.S. And through it all, our founders’ philosophy has remained constant: “Do what you say you’re going to do, and treat people the way you want to be treated.” This credo, articulated by Grimmway Farms founders Rod and Bob Grimm, continues to guide Grimmway’s actions and decisions more than 50 years later. Today, Grimmway grows more than 65 varieties of vegetables in seven states and produces more than 135 different products. We are the largest producer of USA-grown organic fruits and vegetables, with 50,000 certified organic acres, and the world’s largest producer of carrots, cultivating more than 45,000 acres of carrots per year. More than 8,000 dedicated workers enable us to grow, pack, and ship more than 1.3 million tons of fresh carrots and 385,000 tons of organic produce to customers in all 50 states and more than 20 countries each year. In 2020, as market conditions necessitated rapid scaling of our business to meet the growing 4

demand for our fresh, nutritious produce around the world, the business was acquired by Teays River, an independent investment firm committed to improving agricultural value chains across its portfolio. Today, Grimmway continues to grow sustainably while staying true to our legacy and core values. Looking forward, we plan to expand our infrastructure, advance new research and technologies, and continue to invest in the people who make our work and supplying the world with healthy food possible.

OUR MISSION To take care of our customer’s needs every day of the year with consistent quality, service and competitive pricing.

Our 20 facilities and numerous growing regions span seven states across the U.S. We distribute nationwide and to 20 countries around the world.

NV CO CA

A Message from Jeff Huckaby PRESIDENT AND CEO

On behalf of the more than 8,000 team members of Grimmway Farms, I am proud to share our first formal report that explains our company’s Environment, Social and Governance (ESG) efforts and commitments. As the largest carrot grower in the world, and the country’s largest grower of organic produce, we take pride in our ability to provide fresh, healthy products to millions of consumers around the world. It is not a responsibility we take lightly – or for granted. Three years ago, the term “ESG” was not in my business vocabulary. Today, in one way or another, it is part of every boardroom and senior leadership conversation, and a lens we apply to all our major decisions. The good news is that the concepts and values inherent in what we now call “ESG” have always been part of the way we do business at Grimmway. From our founding by Rod and Bob Grimm in 1969 to Grimmway’s new ownership in 2020, doing the right thing by the three “Ps” — people, products, and planet — has always been at the heart of our business and the driver of our enduring success. But we also know we must do more. The last two years have shined an intense light on the need to move ESG considerations to the top of our collective decision tree. Each of us – across all business sectors and geographies – has battled the ravages of COVID-19, witnessed unprecedented weather, droughts and fires associated with climate change, and examined equity and social justice issues that illuminate disparities in access to basic human rights and necessities. 6

That is why Grimmway is making new, strategic and long-term investments in reducing our carbon footprint, preserving our natural resources, integrating new technologies and efficiencies across our operations and supply chain, and bringing advanced training and career opportunities to our diverse workforce. To be a farmer, you have to be an optimist. And I am – the fourth generation in my family to dedicate their life to agriculture. I have always had a passion for this business, but never more so than today. Grimmway Farms is laying the foundation for a robust future for our industry, and for the next generation who will carry the mantle to create better lives in a healthier and more sustainable world.

ENVIRONMENTAL STEWARDSHIP WHAT’S BEST FOR THE EARTH IS ALSO THE BEST WAY TO FARM.

Grimmway employees Joe Pulido Sr. (left) and Joe Pulido Jr. (right)

rimmway Farms is a team of multi-generational farmers who are passionate about what we do and incredibly proud of our history of growing healthy, fresh produce that helps feed the world. At the core of our business is our role as caretakers of the land that has nourished our growth for more than 50 years. Long before climate change became part of everyday conversations, Grimmway had embarked on enterprise-wide sustainability initiatives to protect and preserve our natural resources. Today, with global warming impacts and 100-year weather events occurring with frightening frequency, these strategic investments in drought management, carbon mitigation, soil health, energy conservation, crop rotation, and other regenerative farming practices have enabled us to efficiently manage risk while doing

right by our employees, customers, consumers, and the environment. Grimmway adheres to exacting Conservation Management Plans that guide our sustainability practices around soil health, water usage, agricultural runoff, pesticide use, and other environmental impacts in each of our growing regions. In cooperation with local, state, and federal regulatory agencies, Grimmway meets all state-issued Irrigated Lands Regulatory Program (ILRP) guidelines and U.S. Environmental Protection Agency Total Daily Maximum Load (TMDL) water regulations.

Leadership in Organics

Cal-Organic Farms produce stand in Tehachapi, CA

Grimmway is the largest grower of certified organic crops in the United States. Grimmway has been a leader in organics and growing organically since 1995. In 2001, we acquired CalOrganic Farms, an industry pioneer. For more than 20 years we have fostered a remarkable track record of innovation in organic farming practices that are a model for the industry and exceed USDA standards. Each of our 65 organic crops are grown free of synthetic fertilizers and pesticides, preservatives, and genetically modified organisms (GMOs). Since 2000, we have increased our organically farmed acreage by more than 45,000 acres in seven states (Figure 1): • Planted Organic Acreage 2000 = 2,905 acres • Planted Organic Acreage 2020 = 45,447 acres

Converting crops from conventional to organic acreage is an ongoing priority across our growing regions in California, the Southeast, and Northwest. By 2025, we anticipate including an additional 2,014 acres in our organic farmland portfolio. Across our organic operations, Grimmway feeds the soil to feed the plants, utilizing naturally occurring soil biology to break down organic fertilizers in a controlled way, increasing soil organic matter and health, and minimizing leached nutrients into groundwater. Grimmway uses cover crops to improve soil structure and tilth in various production regions, interspersing legume/grain and safflower plants in crop rotation cycles to provide organic matter and foster microbial activity.

THE SHIFT TO ORGANIC

FIG.1

45,000 40,000

Acerage

35,000 30,000 25,000 20,000 15,000 10,000

Conventional Organic

5,000 0 2000

2002

2004

2006

2008

2010

2012

2014

2016

2018

2020

Over the last 20 years, Grimmway has increased its organically farmed planted acreage to 45,447 acres in seven states.

Every YEAR, EVERY carrot acre converted from conventional to organic: Eliminates up to 450 pounds of soil fumigants Eliminates up to 900 pounds of synthetic fertilizers Eliminates approximately three gallons of pesticides

Recycles approximately 21,000 pounds of animal waste that otherwise would go to landfill Incorporates natural pest control products (natural oils, soaps, beneficial microorganisms) that nourish the soil

Returns 2,500 pounds of carbon to the soil using organic fertilizers 11

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The knowledge we’ve gained by producing a wide range of organic items for more than 25 years has allowed us to vastly expand our organic operations and consistently deliver high-yielding, premium-quality vegetables to our customers. Quality produce and dependable service have garnered Grimmway a reputation of trust and reliability throughout the industry.

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ERIC PROFFITT Executive Vice President, Sales and Marketing

NON-GMO IS THE WAY TO GO No GMOs are purchased or used by Grimmway. Seed suppliers are required to supply documentation stating that their breeding and seed production is done by traditional methods without the use of genetic modification technologies.

BENEFITS OF BIODIVERSITY Grimmway has seven permanent insectary plantings on our California ranches to support native bee and insect communities. Insectary plantings not only promote healthy populations of beneficial insects for our farms, but also support pollinating insects that benefit our neighbors who grow a wide variety of fruit

and nut crops. In addition to independent insectary plantings, we also interplant flowering annuals such as alyssum inside of our organic fields to provide nectar for beneficial insects that naturally assist with lowering pest populations. Promoting biodiversity in our soils is also key to reducing diseases and promoting soil health in our organic systems. We accomplish this by strict adherence to proper crop rotations, through the use of cover crops, and by the addition of compost and other sources of organic matter on which soil microbes depend. Through the years we have learned that fostering biodiversity results in increased soil health, and when we take care of the soil it takes care of us.

Organic red and green leaf lettuce in Cummings Valley, CA

Non-Chemical Weed CONTROL No synthetic herbicides are used in the production of organic crops at Grimmway. Eliminating weeds with a process called “flaming” is a nonchemical option for weed control in organic fields and is a USDA-approved organic weed removal method.

CONTROLLING OUR CARBON FOOTPRINT Grimmway has pledged to become a Net Zero carbon business by 2050 or sooner, in line with the goals of the Paris Agreement.

A row of emerging cauliflower 14

CARBON STORAGE In 2020, Grimmway put 65 million pounds of carbon into the soil using carrot-top green waste, and 86 million pounds of carbon into the soil from applied compost and animal waste. This practice improves soil health, reduces erosion, and increases resilience to drought and flood.

GREEN WASTE: RETURNING NUTRIENTS TO THE EARTH Grimmway farmers are champions of short-term carbon storage – we literally farm carbon. Through the process of photosynthesis, plants harness the power of the sun to combine carbon dioxide, water, and minerals into the food we eat every day. As farmers, we are caretakers of this process. By eating healthy

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Grimmway’s soil health practices improve long-term profitability and crop yield resilience while generating crucial environmental benefits that positively impact climate and human health. RUSSELL L. HAMLIN, PH.D. General Manager, Farming

Grimmway carrots and organic vegetables, consumers participate in the carbon mitigation process. Others that are crucial to this process are the animals that eat vegetable waste products, and soil microorganisms that use these carbon sources as energy. In 2020, Grimmway introduced 65 million pounds of carbon into the food system. Nearly the same amount of carbon was deposited in our soils from carrot leaves, also known as green waste, that were left in the field after harvest. Beginning in 2022, we will be working to document carbon and nitrogen additions from green waste for all of our crops, not just carrots. This will allow us to calculate carbon and nitrogen inputs from incorporated plant residues on an enterprise-wide, whole-farm basis.

GREEN COWS Throughout our history, Grimmway has applied animal waste products in sustainable ways to improve soil health and fertility on our lands. Unusable carrots and other produce are sold for animal feed, which results in waste, which is then made into high-quality compost and returned to the soil. We use composted animal waste extensively to supply our soils with needed nutrients and thus eliminate a portion of the commercial fertilizers that would normally be required to grow our crops. Every field is sampled and tested before planting to determine optimal nutrient needs.

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Massive in its scale, Grimmway applied more than 515 million pounds of compost and animal waste products — nearly 260,000 tons — to our crops in 2020. This equates to placing 86 million pounds of carbon, 2 million pounds of phosphorus, and 3 million pounds of potassium back into the soil, thereby significantly reducing the need for these nutrients from other commercial organic fertilizer sources. If animal waste produced by the poultry and cattle industries is not used constructively, it will be disposed of in local landfills. By upcycling animal waste products, Grimmway reduced local landfill waste by an estimated half-a-billion pounds in 2020 alone.

REDUCING CARBON EMISSIONS According to the U.S. Environmental Protection Agency, the agriculture sector accounted for more than 10 percent of total U.S. greenhouse gas emissions in 2019. We believe the industry can and must do better. As the largest carrot grower and distributor in the world, Grimmway has long recognized our responsibility to reduce our carbon footprint. Over the last five years, we have made significant investments in greener practices and equipment across our production, manufacturing, packaging, and supply chain operations.

By using composted animal waste, we are recycling a waste stream from animal production facilities, using fewer commercial fertilizers, and taking advantage of the slower nutrient-release qualities of composted animal waste. We like to call this our Grimmway “closed sustainability loop,” from earth to plant to animal to earth. 15

IRRIGATION SYSTEMS

VEHICLES

We have increased the number and use of electricitypowered irrigation pumps on our California ranches, and we are replacing all Tier 1 and Tier 2 diesel irrigation pumps with higher-efficiency, cleaner Tier 3 and Tier 4 models (Figure 2). Since 2014, these efficiencies have led to a 35 percent decrease in nitrogen oxides and particulate matter emissions and a 25 percent reduction in carbon monoxide emissions.

Grimmway is converting our light-duty truck fleet to new energy-efficient models that meet California emission standards, the strictest in the nation. To date, we have invested in 89 Ford EcoBoost pickups, which have 15 percent lower carbon dioxide emissions than standard eight-cylinder engines and reduce gas usage by more than two gallons per mile. Calculations indicate that these late-model trucks save 1,042 gallons of fuel per truck over their 150,000-mile lifespan.

Through new system equipment and efficiencies, reductions of particulate matter emissions from Grimmway irrigation pumps in California in 2020 equates to taking 13,600 light-duty vehicles off the road for a year (Figure 3).

We are converting our fleet of smaller gas-powered personnel vehicles to electric and are evaluating electricpowered semi-trucks as the technology advances. Our forklifts are also being converted to recyclable Li-Ion platforms to eliminate the use of lead acid batteries.

PROCESSING EQUIPMENT

ARCGIS ENTERPRISE MAPPING

We have taken the hydronic heating system at our facility in Arvin, CA offline, eliminating approximately 35,000 MMBTU/year of natural gas combustion. According to most recent source test data results and EPA emission factors, projections for taking this offline call for an emissions reduction of more than 2,000 tons annually of carbon dioxide, 315 pounds annually of nitrogen oxides, and 140 pounds a year of carbon monoxide.

Grimmway has invested in advanced GPS in-field technology to streamline service routes and transportation times between ranch sites and locations, reducing fuel consumption and vehicle emissions while eliminating the need for paper maps for employees and suppliers.

IRRIGATION PUMPS BY CERTIFICATION Tier I

Tier II

Tier III

FIG.2

Tier IV

Natural Gas

Electric

700

Number of Pumps

600 500 400 300 200 100 0 2011

2012

2013

2014

2015

2016

Changes in the number of irrigation pumps by certification type since 2011.

2017

2018

2019

2020

REDUCTIONS IN NOx, CO & PM EMISSIONS

FIG.3

Particulate Matter 5.0 4.5 4.0

Emissions (Tons)

3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2011

2012

2013

2014

2015

Nitrogen Oxides

2016

2017

2018

2019

2020

Carbon Monoxide

140

120

Emissions (Tons)

100

0 2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

Efficiencies in our irrigation systems have led to a 35 percent decrease in nitrogen oxides and particulate matter emissions, and a 25 percent reduction in carbon monoxide emissions.

TRACTOR EMISSION REDUCTIONS

FIG.4

Reduced Emissions (Tons)

700 600 500 400 300 200 100 0 2018

2019

2020

Cumulative emission reductions (in tons) by year due to the replacement of older tractors with newer Tier 4 models.

FARM EQUIPMENT

SUSTAINABILITY IN OUR SUPPLY CHAIN Grimmway vendors used in maintenance, repair, and operations are asked to sign a Supplier Code of Conduct, signifying (among many other provisions) that they operate in accordance with local, state, and federal environmental laws and commit to adhere to Grimmway’s sustainability practices. Suppliers are subject to a thorough request for information (RFI) review and agree to an on-site evaluation prior, if we deem it necessary.

The Tier 4 Final Engine Regulations are the highest standards for reducing nitrogen oxide emissions and particulate matter in diesel-powered engines found in tractors and other large farm equipment. Grimmway’s Tier 4 implementation process has been underway since 2006. Since 2018, we have voluntarily replaced 25 percent of our tractor fleet (128 vehicles) with new Tier 4 models, representing a reduction in emissions of more than 600 tons annually in each of the last three years (Figure 4). Since 2007, upgraded engines on Grimmway carrot harvesters have reduced nitrogen oxides emissions by 76 tons.

DRONES Aerial imagery drone flights are used to monitor blocks and crops to enable the Farming and Quality Assurance departments to review the status of fields remotely in real time. The use of aerial imagery ultimately results in better information and better decisions in the field.

Energy Conservation

Met West Facility in Bakersfield, CA

Solar power and energy efficiency projects are helping reduce our reliance on conventional energy sources. In 2011, Grimmway installed our first solar energy array in the San Joaquin Valley. Today, the company owns and operates five solar arrays at four different facilities that generate enough electricity to power more than 1,100 California households every year. Collectively, these systems total 4.75 MW DC, and through the end of 2020 had generated more than 61 million kWh of clean energy.

are now required company-wide in all lighting maintenance and replacement projects. A 2021 study of the air compressor system at our Malaga facility has identified a potential savings of more than 1 million kWh/year with proposed upgrades. This project is being evaluated for 2022 implementation.

In the last decade, lighting projects at our facilities have replaced more than 3,100 fixtures with energy efficient LED or fluorescent bulbs. Together, these efficiencies have saved more than 2.4 million kWh a year, or enough energy to power some 400 California homes annually. Energy-saving fixtures and bulbs 19

Smarter Water Usage In the face of persistent challenges, we have mastered the science of water management down to the last drop. Grimmway has always monitored and tracked weather patterns and adjusted our farming practices and crop rotations accordingly. However, the real wakeup call came in 2000, when we began consistently experiencing abnormally dry growing conditions at our ranches in California. Subsequent droughts — in 2011, 2014, and one of the worst we’ve seen yet in 2021, have taught us valuable lessons in effective and environmentally responsible water management and renewal. Grimmway continues to diversify our growing areas with a focus on locations less affected by drought conditions. We now farm in places that have access to both surface and groundwater sources to mitigate shortages. By having multiple growing areas, we have more flexibility in when and where we plant and are better equipped to manage localized drought conditions. If water is limited for our spring season crops, we will extend our winter season or start our summer season early in other areas that are not as impacted. This allows us to reduce and conserve water in drought-stricken areas while maintaining our supply of fresh produce to customers and consumers. We continue to relocate some crop production to less drought-prone areas, notably our 2020 expansion into 20

Center-pivot irrigation system at work at our Southeast growing operations

the Northwest’s Columbia River Basin, which moves summer production to a more water-secure area. Close coordination with local and regional water districts is key to managing Grimmway’s use of surface and groundwater supplies. Working with the ArvinEdison Water Storage District (WSD) in Kern County, Grimmway has modeled water use for 2021 so the district can turn back some surface water allocation to other users who may not have access to secondary groundwater sources. Similarly, in Tehachapi, our agronomists are in near-daily communication with the water district to be as efficient as possible with this year’s five percent surface water allocation. We are collaborating with the district on creative solutions to maximize groundwater supplies that had previously not been available. And at Grimmway’s state-of-theart facility in Pasco, Washington, all water used in the packing house is recaptured and reused two-to-three times onsite before being returned to the local Water Utility for redistribution. In addition to drought mitigation strategies on the farm, Grimmway also advocates for regional infrastructure projects that will empower irrigation districts to deliver more surface water in high-flow years and recharge aquifers. The Friant-Kern Canal subsidence fix will eventually restore full water delivery to over 1 million acres of farmland and 250,000 Central Valley residents, and additional surface water infrastructure in Arvin-Edison WSD will significantly supplement its Groundwater Service Area. These projects will help Grimmway be more resilient to future droughts as well as address the over drafting of aquifers in key areas.

FARM WATER EFFICIENCIES At our Lamont, Thermal, and Coachella ranches in California, Grimmway has reduced water usage by more than 7 million gallons over the last year. This reduction is attributed to the installation of efficient nozzles that enable more exacting control of the water flow. Across Grimmway’s Southeast operations—where too much water is often the issue—we have installed realtime irrigation system sensors across more than 4,500 acres of carrots to enable 24/7 remote monitoring and flow and drainage control. Grimmway has integrated a variety of advanced water-saving technologies to manage and minimize water use. Among them: • Variable Frequency Drives (VFDs) that reduce electrical demand and match the water source to crop needs. • Drip irrigation systems that increase water application efficiency. • Pivot watering systems that reduce runoff and soil erosion. • Pressure-sealed Certa-Set® irrigation pipes to minimize leakage. Certa-Set irrigation pipes

Water Banking in West Bakersfield Grimmway has built 460 acres of recharge basins on the Stockdale East Ranch water bank in West Bakersfield. In partnership with Rosedale Rio-Bravo Water Storage District, the project is designed to pump “high-flow” water from the Cross Valley Canal into the bank. In dry years, we will continue to farm within the berms, and in wet years we will flood the berms and bank surface water for future use. By 2028, we estimate we will be able to recharge over 20,000 acre-feet of high flows – or more than 6.5 billion gallons – in the water bank to make our farming operations more drought resilient, counter projected regulatory cutbacks, and be responsible neighbors.

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Grimmway is always working on ways to enhance our soil so that it captures and retains more water. In addition, our water banking project captures excess water during high-flow years, puts it in the ground and banks it for future use. – JEFF HUCKABY

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THE JUICE PLANT 27.9 Million Pounds of Juice Products Produced Annually In Grimmway’s efforts to ensure as little product as possible goes to waste, vegetables including carrots, beets, kale, onions, and broccoli are repurposed for different uses. Composed of more than 85 percent water, carrots are an excellent source of nutritious juice, and each year the Grimmway Juice Plant turns out nearly 28 million pounds of high-quality vegetable juices, purees, and concentrates for distribution to customers around the world. During busy season, the plant runs 24 hours a day, up to seven days a week, with a highly trained crew that has made energy and water savings top priorities. Most water removed from the vegetables during the concentration process — an average of 50 gallons per minute — is captured and reused.

HECTOR PACHECO OPERATIONS MANAGER

Hector has been around carrots and vegetables his entire working life. He joined Grimmway more than 25 years ago, beginning his career in production at the Malaga facility before moving to the Juice Plant and advancing to Operations Manager.

Reduce, Reuse, Recycle We have made tremendous strides in minimizing waste among both our products and our packaging. Grimmway has a number of initiatives underway to help mitigate the environmental impact of the containers, pallets, and packaging that carry our fresh produce from the field to the grocery store. More than 92 percent of Grimmway’s primary active packaging SKUs are now made from material that can be recycled. Our goal is to have 100 percent recyclable, compostable, or biodegradable packaging available for all retailers. From April 2020 to April 2021 at our Cal-Organic facility, more than 146 tons of produce, consumer packaging, shipping containers, and other waste was diverted from local landfills.

Grimmway fully complies with all Model Toxics in Packaging Legislation, which prohibits the intentional use of any amount of four metals — lead, mercury, cadmium, and hexavalent chromium — in any packaging and packaging component.

PACKAGING In 2020, Grimmway eliminated 1.3 million pounds of paper waste and 600,000 pounds of paraffin wax waste from landfills by utilizing reusable plastic containers (RPCs) as replacements for wax cartons. By transitioning more retailers to these post-consumer recycled resin cartons, we will reduce the amount of non-recyclable material placed into the waste stream by more than 2 million pounds annually. Through the elimination of underutilized packaging, we removed 1 million square feet of non-recyclable waxed paper from the waste stream. By removing plastic zippers from packaging, we diverted 4.3 million linear feet — or 8,000 pounds — of petroleum-based plastics from landfills, with the continued goal to reduce the amount of zippers used in our products. 23

PALLETS Grimmway participates in nationwide pallet pooling programs that provide on-demand rental of pallets at the time, place, and scale needed during rotating harvest seasons. For pallets we already own, the pallet repair program reuses recycled materials to reduce the volume of solid waste introduced into the waste stream.

10X20X30 Grimmway has joined 10 of the world’s largest food retailers and nearly 200 fellow providers in committing to root out food loss and waste from the supply chain. The groundbreaking “10x20x30” initiative engages the global food community in support of the United Nations’ Sustainable Development Goal Target 12.3, which calls for 50 percent reduction in food waste worldwide by 2030. Grimmway has committed to this 50 percent reduction in food waste within our own operations, to measuring and publishing our food loss and waste inventories, and to taking actions to further reduce waste

“

10x20x30 is a great example of how companies are working in partnership with food suppliers to tackle food waste from farm to fork. I urge others to follow their example. DAVE LEWIS Group Chief Executive, Tesco

”

Responsible Farming Practices The land is our life and livelihood. We are duty-bound to be responsible stewards.

Emerging radishes

PESTICIDES All of Grimmway’s organic produce is grown without the use of any synthetic fertilizers or pesticides. In all our farming operations, we implement preventive measures to reduce the need for insecticides by reducing pests naturally. Alyssum is interspersed in crops to help control damaging insects, and we use “trap crops” that divert damaging insects away from healthy plants. We also release beneficial insects into the fields that eat the “bad” bugs and leave the crop untouched. When synthetic pesticides are required to ensure the quality and health of Grimmway’s conventional crops, we exceed industry and jurisdictional protocols for responsible and safe use, transportation, and storage. Grimmway rotates pesticides with different modes of action and applies pesticides that only target specific pests. Before any synthetic product is approved for use, it goes through a cross-checked approval process to ensure local government regulations are followed, and only federally and state-labeled products are applied. 25

Harvesting green onions

Certified Agricultural Pest Control Advisors (PCAs) scout every Grimmway field in production on a weekly basis looking for signs of pest or disease, and all written spray recommendations must be attached to a field survey. Synthetic pesticide application is overseen by Grimmway’s Spray Division Manager. All chemicals are stored in locked and monitored onsite storage facilities, and pesticide application equipment is calibrated monthly. Before any application takes place, local wind speed, wind direction, and temperature are measured and recorded to minimize any drift or groundwater leaching. If weather conditions are not optimal, no spray is performed. Employees are provided with personal protective equipment and trained in triple rinsing and exacting chemical safety protocols. Safety Data Sheets (SDS) and application requirements are prominently displayed at each ranch location, and any unused or expired pesticides are disposed of by licensed hazardous materials experts.

SOIL HEALTH We apply soil nutrients in a way that optimizes uptake and crop health while minimizing the risk of agricultural runoff, accumulation, or leaching. Our approach to fertilizing is reflected in the 4Rs of Nutrient Stewardship, a national industry-wide framework to achieve crop system goals through enhanced environmental protections. • Right source: Matches fertilizer type to crop needs. • Right rate: Matches amount of fertilizer type to crop needs. • Right time: Makes nutrients available when crops need them. • Right place: Keeps nutrients where crops can use them. 4R Nutrient Stewardship requires the implementation of best management practices that match nutrient supply with crop requirements and minimize nutrient losses.

Soil characteristics, such as texture, cation-exchange capacity (CEC) and organic matter are considered on a field-by-field basis. Sandy soils that are prone to leaching receive less fertilizer but more frequently in a “spoon feeding” approach, while heavier soils with higher CEC are fed less often because of the soil’s inherent ability to retain needed nutrients. All fertilizers are either applied through an irrigation system, applied and disked into the ground, or shanked into the soil using specialized equipment. In no instance is fertilizer left on top of the soil.

SOIL STRUCTURE AND TILTH Grimmway agronomists conduct soil testing on every crop and maintain an extensive database of historic and current readings in each field to understand Soil Organic Matter (SOM) over time. Our primary soil degradation issue is the accumulation of salt from saline irrigation waters, which is common in many of the arid regions where we farm. Leaching of excess salts in these environments is a normal and necessary practice to ensure the integrity of our crops and is carried out as part of our responsible farming practices.

SOIL EROSION Wind erosion and dust mitigation practices are detailed in our Conservation Management Plans and are managed through the extensive use of cover crops, specifically vetch/rye blends, pea/oat blends and native grasses. These practices have resulted in zero erosion on more than 80 percent of all our cultivated cropland.

Cultivating carrots in Arvin, CA 27

Farming AND Field Innovations Grimmway is a pioneer in farming automation to deliver high-quality, fresh produce efficiently at scale.

Farm innovation at Grimmway is driven by the need to secure the food supply chain and our mission to provide the world with high-quality, healthy produce. It is largely centered on finding cost-effective solutions for efficiently weeding and harvesting crops. Automation helps ensure our ability to operate in challenging times, such as during California’s extreme weather and wildfire events and the global COVID-19 health crisis. By integrating precision agricultural technology into our operations, we are managing labor risks and ensuring sustainable consumer access to affordable, healthy, and fresh produce.

Automated thinning machine uses optical technology to remove excess crop 28

Carrot harvester in Cuyama, CA

WEEDING Grimmway is exploring the benefits of automated weeders to make the most labor-intensive weeding more efficient and less expensive. These robotic machines use advanced optics to locate crops on the ground and then automatically direct cultivating implements to lightly disturb the soil between plants. The result is greater cultivation efficiency, fewer weeds, and lower labor costs. Grimmway is also investigating the utility of autonomous rovers that target and kill weeds using advanced imaging technology and laser beams. The rover can distinguish between “good” and “bad” seedlings, then eliminate the bad weeds with high-intensity lasers while leaving the good plants untouched. These autonomous systems represent the cutting-edge of weed abatement technology.

HARVESTING Grimmway is testing the use of automated harvesting equipment for some vegetable crops that lend themselves to mechanical harvesting, such as radishes and beets. Automating harvest operations for these crops has the possibility of reducing reliance on manual harvesting and lowering per-unit production costs.

WESTERN GROWERS GLOBAL HARVEST AUTOMATION INITIATIVE Recognized as one of the industry’s foremost adopters of new technologies, Grimmway Farms is one of five agricultural companies selected to participate in the new Global Harvest Automation Initiative (GHAI), a program by the Western Growers industry association to accelerate harvest automation across the fresh produce industry. The GHAI initiative comprises several projects designed to address the agriculture industry’s labor challenges while also helping start-up robotics companies commercialize and scale. These include: • Developing a documented set of technical interfaces to help participants leverage industrystandard components. • A cohort of companies to integrate the technology stack into their product roadmaps and go-tomarket strategies. • An annual analysis on the impact of harvest automation on the specialty crop industry based on grower metrics and traction. Director of Innovation and New Technology Jeff Morrison leads our participation in GHAI. He is collaborating with a team of fellow agriculture and automation experts in building the GHAI technology stack and connecting cohort startups with equipment and device manufacturing partners.

OPERATIONS

Malaga facility in Arvin, CA

Project Redzone is modernizing plant operations through smart technology and team empowerment. Grimmway Farms is piloting an advanced digital communications and collaboration platform designed to increase productivity, compliance and equipment reliability in our Malaga fresh carrot processing facility. Specifically designed to meet the production needs of large food and consumer packaged goods companies, the Redzone software system engages and enables our frontline team members to resolve issues in real time. Integrating social-mobile digital technology to connect across departments and job functions, Project Redzone drives ownership of processes and procedures to the plant floor to increase productivity, food safety and quality, and accountability. In addition to improved labor engagement and material utilization, Project Redzone has introduced Lean Manufacturing and Kaizen best practices at the plant level, offering cross-training opportunities and 30

involving frontline employees in root cause analysis of production or quality issues. Through Grimmway’s Six Sigma approach to quality control, employees are encouraged and rewarded for presenting ideas for process improvements. In the first three months of Project Redzone implementation, we have seen productivity gains of nearly five percent at our Malaga plant, with up to 20 percent gains predicted within the next year.

SPOTLIGHT ON WASHINGTON AND GEORGIA/FLORIDA OPERATIONS

products shipped to customers across the U.S. and Canada each year.

Diversifying our growing regions has allowed Grimmway to widen availability windows for seasonal commodities and recognize efficiencies to meet increasing demand. It also reduces food miles for our customers and helps us deliver fresh produce to stores more quickly and efficiently. Situated in southeast Washington State at the confluence of the Snake and Columbia Rivers, Grimmway’s Pasco operation opened in 2015. Spanning 4,500 acres of carrots, the ranch and fully automated state-of-the-art packing plant is operated by 18 full-time employees, who are joined during each fall harvest by up to 225 seasonal contractors. Because field harvesting is done by automation, many of our seasonal workers have been upskilled to operate the high-tech optical sorters and automated boxing equipment that results in 50,000 tons of healthy, fresh

Grimmway’s Southeast operations encompass nearly 5,000 acres of fertile farmland on the southern Georgia-Florida border. With 3,500 acres of carrots and more than 1,000 acres of mixed vegetables and blueberries, we’ve seen significant growth over the last three years, adding more than 25 organic crops to our portfolio and becoming the leader in large-scale organic farming in the region. Grimmway Southeast is staffed by 75 permanent employees and up to 1,000 seasonal contractors, the majority of whom work with us year-over-year. Free housing is provided to all seasonal employees during their employment. The company-subsidized, onsite Migrant Farmworkers Clinic, operated in cooperation with the Georgia Department of Community Health, provides free medical care to our farmworkers and other families throughout the community.

“

Grimmway’s reputation for farming excellence, environmental responsibility, and community engagement has sown deep roots in both our Washington and Georgia locations. I’m incredibly proud of the people I work with who enable Grimmway Farms to consistently provide the freshest, healthiest produce in the country.

”

JAMIE BRANNEN General Manager

Growing region in Columbia Basin, WA 31

SOCIAL IMPACT A TRULY SUCCESSFUL COMPANY IS ONE THAT BENEFITS THE WORLD.

t Grimmway, we take seriously our responsibility as a corporate citizen of Bakersfield and Kern County, the State of California, the U.S., and the world. Equally important to building a profitable and sustainable business, our goal is to have a positive impact on society. We live in a time of rapid social transformation globally. We are all part of the solution to addressing inequities in access to economic opportunity and security. Demographic changes in the U.S. demand that we actively embrace more diverse ethnic, cultural, and gender representation at all levels of our workforce.

recognition of the valuable contribution of immigrants to the economy, especially in the field of agriculture. And, as a producer of food, the health of our customers and the integrity of our products are our highest priorities. These commitments and convictions are woven into our company culture and character, and we put them into practice in our everyday operations.

To that end, we are proud to reaffirm our commitment to fair and equitable employment practices, advancement opportunities for women and minorities, and improving the quality of life in the communities we serve. We advocate for immigration reform and

QUALITY ASSURANCE AND FOOD Safety

Juice plant product testing

Consumers can buy our products with confidence that they meet the industry’s most rigorous safety standards. Food safety and quality assurance are not simply check boxes. They pervade every aspect of our multi-state operations from seed to store, encompassing planting, growing, harvesting, processing, packaging, and transportation of our products. Led by Vice President of Quality Assurance Ben Diesl and Vice President of Food Safety Dinesh Babu, Ph.D., the QA and Food Safety teams are experienced, passionate, and data-driven professionals who touch every aspect of Grimmway’s business. On any given day, members of the team may be found collaborating in real-time with agronomists in the fields and employees and managers at the packing plants; providing documentation for local, state, or federal regulatory compliance; or investigating and addressing a customer or consumer inquiry. 34

CERTIFIED QUALITY Our fields and facilities are certified under Global Food Safety Initiative (GFSI) compliance audits, and our microbiology lab has been accredited to International Standards Organization (ISO) safety standards by the American Association for Laboratory Accreditation. In 2007, California farmers made an unprecedented commitment to protecting public health through the California Leafy Green Products Marketing Agreement (LGMA). An industry-led and developed initiative, LGMA is administered by the California Department of Agriculture and sets strict, science-based safety standards for leafy green foods from the field to the store. Grimmway has been a certified member of LGMA since its inception, indicating 100 percent

compliance with its leafy greens safety standards and practices. Bottom line: Assurance to every customer that every Grimmway product sold meets the industry’s highest standards for food safety, quality, and freshness.

customers hear about it from us first. We also have a formalized process for managing customer questions, which are immediately forwarded to our Quality Assurance team for investigation and resolution.

RESPONSIVENESS TO CUSTOMERS We maintain a helpline as well as contact tools on our website for customer and consumer inquiries, which we monitor and respond to every day. If the public needs to be alerted to a food safety issue, we will activate our proactive crisis communication response plan so that

Certifications We work with relevant certifying agencies to ensure our products and processes meet all regulated standards. Our farms and facilities undergo frequent reviews and inspections to maintain accreditation. Among them: • USDA Organic

• A2LA

• CCOF Certified Organic

• SQF

• Non-GMO Verified

• PrimusGFS

• Orthodox Union Kosher

Sharing Best Practices The QA and Food Safety teams actively engage with our industry peers to share knowledge and best practices. • National Organic Standards Board

• Center for Food Safety

• California Fresh Carrot Advisory Board

• Organic Produce Network

• California Leafy Greens Marketing Agreement

• Organic Trade Association • United Fresh Produce Association

• California Organic Products Advisory Committee

Employee Health AND Wellness A healthy workforce means a healthy business. Employee wellness is one of our most important investments.

Grimmway’s annual softball tournament has been going strong for more than 20 years 36

Grimmway Fitness Center

As a producer of healthy food products, we feel a particular responsibility to be a model of progressive health and wellness policies and practices in our workplaces and communities. Helping our workforce stay healthy — physically, mentally, and emotionally — is both a moral obligation and a business imperative.

WHOLE-PERSON HEALTH BENEFITS Our benefits package goes well beyond ensuring access to high quality medical care. It includes: • Free one-on-one counseling for mental and emotional health issues, substance abuse, and family matters through our Employee Assistance Program. • Diet, nutrition, and fitness support through our LifeSolutions resources and referral program.

CLINICAL ACCESS At Grimmway Southeast on the Georgia/Florida border, our farmworkers have access to the onsite, company-subsidized Migrant Farmworkers Clinic, which provides free medical care to farmworkers and families throughout the community. The clinic is federally funded through the Georgia Department of Community Health (DCH) and the Boards of Health in Echols and Lowndes Counties.

GRIMMWAY FITNESS CENTER Eligible employees can take advantage of personal training, yoga, Barre, and Zumba® fitness sessions at the Grimmway Fitness Center at our headquarters location in Arvin, CA. The center offers a full range of exercise equipment and a swimming pool, and hosts annual flu clinics and blood drives.

• Wellness programs such as smoking cessation, an annual flu clinic, and more.

MITIGATING WORKPLACE HAZARDS In our fields and processing facilities, the Agriculture Worker Protection Standard (WPS) is in full force. Upon hiring and every year thereafter, our team members receive comprehensive safety training, covering relevant aspects of plant and farming operations from heavy equipment and machinery usage to the handling and storage of agricultural chemicals. 37

Our Response to COVID-19 Rigorous safety protocols enabled us to maintain production and continue delivering healthy food. Grimmway moved swiftly and decisively to mitigate the impact of the COVID-19 pandemic on our people, our products, and our production. As a leading contributor to the nation’s food supply, our workforce is considered essential, so keeping our workplaces safe has been our overriding priority throughout the pandemic and the public health response. Measures we have taken include: • Company-provided face coverings in all indoor workspaces and in any product handling areas. • Regular preventive sanitizing and disinfection of common areas in food processing buildings and offices. • Rigorous testing protocols in line with OSHA standards. • A return-to-work checklist for COVID-related absences to ensure any affected employee was healthy enough to work and did not pose a danger to others.

For Grimmway employees or labor contractors who live in shared housing, we implemented strict notification and quarantine policies for workers who tested positive, were symptomatic, or in close contact with someone who had tested positive for COVID-19 within the prior 21 days.

DELIVERING VACCINATIONS In addition to complying with federal, state, and local public health mandates, Grimmway set up 27 clinics at several sites to administer COVID-19 testing and vaccinations for employees. In supplementing community efforts, Grimmway administered 2,400 vaccinations. Where we did not have clinics, we coordinated access for our employees with local healthcare providers.

• Clear and comprehensive employee absence, selfisolation, and work-from-home policies. • Suspension of non-essential business travel, in-person meetings, group gatherings, and training sessions, with social distancing requirements for meetings considered essential. • A daily screening protocol for all employees working on site. As state and local health officials mandated the closing of workplaces, our operations teams worked quickly to identify work that employees could perform from home. We undertook a substantial increase in our technological capacity to accommodate remote work. Meanwhile, we issued a daily impact report tracking quarantining, childcare-related absences, high risks, precautionary leaves, and positive testing among our workforce. We also complied voluntarily with the California Attorney General’s request for information on protection of agricultural workplaces. 39

Diversity, Equity, AND Inclusion A variety of viewpoints makes us a better company. We believe the diversity of our workforce is one of our great strengths and a point of pride for everyone at Grimmway. While we comply with the letter of the laws against discrimination, it is more important that a spirit of inclusivity is ingrained in our culture. Personal and professional growth opportunities abound at Grimmway for qualified and motivated individuals, regardless of an individual’s inclusion in protected or marginalized categories. Diversity, equity, inclusion, and anti-bias education is provided to employees via the company’s learning management system and targeted opportunities are communicated by email. In 2020, employees voluntarily completed 57 different courses on these topics. In addition, employees complete prohibition of discrimination and harassment training within 90 days of hiring and are retrained every two years, in compliance with California law. Grimmway uses the more expansive California training content on discrimination, harassment, and bullying across all company locations to strengthen inclusivity.

The women of Grimmway are involved in every aspect of our business. Pictured above are representatives from Accounting, Agronomy, Employee Benefits, Employee Learning and Development, Employee Relations, Farming, Finance, Food Safety, Human Resources, Operations, Product Innovation, Production, Quality Assurance, Safety, Sales, and Transportation and Logistics.

A Model for Women in Agriculture Grimmway is an industry leader in the number and percentage of women who hold leadership positions, not only on the operations side of the business, but also in farming and agronomy. These experienced business managers and distinguished agricultural scientists strengthen our team and have contributed significantly to the company’s growth over many years. Not only do they serve as positive role models for women at all levels of our company, but their talents and perspectives are critical to our ability and goal to make our company a place that is good for employees and their families. Among the Grimmway women in leadership positions:

OPERATIONS AND MANAGEMENT • Dana Brennan, Vice President of Government and Public Affairs • Katie Diesl, Vice President of Finance • Cassie Gallagher, Geographic Information System Supervisor • Luz Garcia, Director of Quality Assurance • Sara Oliver, Chief People Officer • Loureen Pierucci, Director of Fresh Carrot Operations

FARMING • Rene Carlson, Ph.D., Organic Agronomist • Kimberly Horton, Organic Agronomist • Logan Petrey, Organic Farm Manager, Southeast; Member, National Organic Standards Board • Manjula Talari, Director of Food Safety – Farming Operations • Zoe Tucker, Compost Manager • Martha Zwonitzer, Conventional Agronomist

• Cathy Pineda, Human Resources Manager SALES • Lisa McNeece, Vice President of Foodservice and Industrial Sales • Sherry Kirsch, Fresh Sales Team Manager

SARA OLIVER CHIEF PEOPLE OFFICER

Following more than 25 years with the company, Sara was named to Grimmway’s Executive Leadership Team as the company’s first Chief People Officer (CPO) in 2021. She leads all aspects of human resources strategy and operations, and is also responsible for ESG monitoring and annual reporting.

Philanthropy AND Community Partnerships

Employees participating in Grimmway’s Annual Clean-Up Day

Giving back to our communities comes naturally. We are proud to share the bounty of the earth. Grimmway has been giving back to the communities in which we operate since our inception, investing in our employees, neighbors, and the young people who will be the farmers and food producers of the future. To bring focus to our philanthropic efforts, we have identified three areas of priority that align with our values and strengths, where we are well positioned to make an impact. • Food Insecurity: We champion organizations that help people experiencing food insecurity, in furtherance of our commitment to equity and social justice. • Agricultural Education: We invest in agricultural education for children and young adults to support and develop the next generation of talent in our industry. • Employee-Driven Engagement: We support our employees and the causes they are passionate about.

FOOD DONATIONS FOR COVID RELIEF Throughout the COVID-19 pandemic, Grimmway has donated over 1.3 million pounds of carrots and CalOrganic Farms vegetables to food banks, hospitals, and charities in the communities across the country where we operate, both directly and in partnership with our supermarket customers, notably Hy-Vee in the Midwest. We also joined forces with others in the community of Bakersfield to help set up and stock onsite pop-up grocery stores at area hospitals specifically to serve front-line healthcare workers. Grimmway team members worked with local and state organizations, industry partners and customers to find creative ways to use existing distribution channels, thereby reducing the logistical footprint of the donations, and keeping costs and contact along the supply chain to a minimum.

ANNUAL COMMUNITY CLEAN-UP Grimmway employees lead our Annual Clean-Up Day, rotated among various public parks and facilities in Kern County. Employee volunteers and their families gather to pick up trash, paint over graffiti, and plant trees. The restoration efforts help provide local residents and visitors with clean walkways and safer recreation areas.

COMMUNITY PARTNERSHIPS

Kern (CAPK). This high-impact nonprofit serves as the county’s official anti-poverty agency and is dedicated to helping low-income residents live healthier and better lives through access to education, jobs, nutritious food, and family development opportunities. Grimmway is also a founding participant in B3K Prosperity, a public-private partnership to develop a roadmap and investment plan for economic growth and inclusion in Kern County. B3K is creating a common agenda to identify opportunities for regional prosperity by aligning diverse countywide efforts and prioritizing job quality and access.

Grimmway is a long-time partner and financial and inkind supporter of the Community Action Partnership of

“

We are extremely grateful for our partnership with Grimmway Farms as we help care for our communities during this difficult time. TINA POTTHOFF

”

Senior Vice President of Communications, Hy-Vee, Inc.

“

Thank you Jeff Huckaby and Grimmway Farms for your immediate response to a plea to help California food banks meet the significant increase in demand. KAREN ROSS

”

Secretary, California Department of Food and Agriculture 43

Education AND Empowerment Our investment in developing tomorrow’s leaders enriches both our communities and our company.

2021 recipients of the Grimmway Farms Scholarship Program 44

We have an abiding interest in supporting education, both to elevate achievement levels in our communities and to develop the next generation of agriculture workers and leaders.

COLLEGE SCHOLARSHIPS FOR EMPLOYEE FAMILIES The cornerstone of our commitment to education is our scholarship program for children of employees. In 2021, we awarded scholarships to 25 recent high school graduates to attend two- and four-year colleges, as well as laptop computers to recipients with a 4.0 grade average. From 1997 through 2020, Grimmway awarded $2.1 million in new and continuing scholarships to more than 740 students. We are proud to support our Grimmway families, and to help many of our team members’ children be the first generation to attend college. Developing and supporting the future workforce, with the skills needed in an increasingly technology-driven world, is a priority.

“

I am excited to announce I will be a student of the Columbia University-Tel Aviv University Dual Degree Program where I will study Digital Culture and Communication as well as Literature and Music. Thank you from the bottom of my heart to Grimmway Farms. YAEL BRIGHT

”

2021 Grimmway Farms Scholarship Program recipient

EDUCATING THE NEXT GENERATION OF INDUSTRY LEADERS Grimmway is proud of its long-standing relationship with the California State University System. With 23 campuses, the CSUs educate the most ethnically, economically, and academically diverse student body in the nation. Graduates are a critical talent pipeline, ensuring the company can meet the ever-growing demand for a trained workforce and healthy and nutritious produce, and do so responsibly. Grimmway President and CEO Jeff Huckaby was one of five CSU graduates selected from 3.7 million alumni for the System’s 2019 “Made in the CSU” campaign. In 2020, Grimmway donated $5 million to the Cal Poly (San Luis Obispo) College of Agriculture, Food and Environmental Sciences. The gift, initiated by the Grimm family with support from the company, established the Center for Organic Production and Research, to provide research and teaching opportunities. Research of soil structure and biodiversity, nutrient cycling, carbon sequestration, water quality, and composting will be at the forefront of the Center’s mission. Grimmway team members will serve in an advisory role. Grimmway has a longstanding relationship with Cal Poly, including active recruiting efforts and ongoing research programs, and Jeff Huckaby serves on the Dean’s Advisory Council.

established an endowment for the Grimm Family Center for Agricultural Business, which the university characterized as “a transformative opportunity for students, our local workforce, economy and very future of farming.” Jeff Huckaby has been inducted into CSUB’s Alumni Hall of Fame and serves as an advisor on agricultural and business programs and curricula.

STEM EDUCATIONAL SUPPORT Members of our engineering team regularly journey back into the high school classroom to share their career experiences, and to encourage students to enjoy and explore Science, Technology, Engineering, and Math (STEM) studies and careers. We also support Cal State Bakersfield’s STEM-related grant processes and use our knowledge and network to advance and advocate for funding for their programs. Grimmway collaborates closely with Bakersfield College, part of California’s 165-campus community college network, serving 33,000 students in Kern County. Grimmway team members serve in active advisory roles to BC’s first-ever four-year degree program in Industrial Automation (IA), an important workforce development pipeline for the agricultural community, and other key industries in Central California. Grimmway also provides internships to these students, giving them an opportunity for hands-on learning and real-work experiences.

Coinciding with Grimmway’s 50th anniversary in 2019, Grimm family members pledged $5 million to California State University, Bakersfield – the single largest gift in the university’s history. The gift 45

LEADERSHIP DEVELOPMENT Grimmway encourages and sponsors young leaders across our dispersed geographic areas to participate in community leadership and professional development programs. As one example, Jason Chandler of Grimmway’s Southeast team has been selected for the 2021-22 Emerging Leaders Development Program by the Florida Fruit and Vegetable Association. Since 2011, this program by the Florida Specialty Crop Foundation has provided more than 110 young leaders with an immersive learning experience exploring opportunities in Florida’s diverse agriculture community.

COLLEGE INTERNSHIP PROGRAM Each year, across all areas of our business, we provide paid, hands-on learning opportunities for approximately 40 college students to gain real work experience. Our intern groups reflect our commitment to diversity, and internships often lead to full-time employment with Grimmway after graduation – 23 former interns have joined the company since 2016. 2016 – 2020 five-year average intern group composition: • 50 percent Male

• 5 percent Asian

• 48 percent Female

• 6 percent Black

• 39 percent Hispanic

“

My background in the agriculture industry comes from my family and talk of the industry is always abuzz around our dinner table! I am so thankful for the opportunity to work at Grimmway Farms. It’s taught me that there are so many ‘behind the scenes’ roles in supporting a thriving, complex farming company.

”

HUMAN RESOURCES DEPARTMENT INTERN

Grimmway University: Accelerating Promising Employees Launched in 2021, Grimmway University is our internal leadership and organizational development program that allows us to cultivate the talent that will carry our company into the future. The program identifies highperforming, high-potential employees and takes them through every department of the company to educate them on all aspects of the business. The Grimmway University curriculum enables these individuals to gain a deeper understanding of not only how we operate, but why we operate as we do. Responsible sustainability and water usage practices figure prominently in the curriculum. Grimmway University also provides customized educational opportunities for key customers, board members, and stakeholders. These one- to two-day training sessions are based upon the specific needs of the individuals or groups.

ADVOCACY FOR FARMWORKERS Like so many in the agricultural industry, Grimmway Farms relies heavily on a labor force largely made up of migrant workers. We have long been a champion of farmworkers’ rights and their entitlement to dignity, respect, fairness, and safety on the job. In 2021, we joined with United Fresh, the nationwide produce association, to advocate for the Farm Workforce Modernization Act (FWMA, H.R. 1603), a bipartisan bill introduced by representatives Zoe Lofgren (D-CA) and Dan Newhouse (R-WA). The FWMA would provide undocumented farmworkers and their families with a path to legal immigration status and citizenship. It would also bring needed improvements to the H-2A agricultural guestworker program and require mandatory employment verification in agriculture. The new law would free farmworkers from fear of deportation and labor exploitation and give them a greater voice on working conditions. It would create a more stable farm labor force, and ultimately benefit consumers with a safer, more reliable food supply.

Social Responsibility in Our Supply Chain Alignment with our social values and labor practices is a requirement to do business with Grimmway. A company of our size and scale has an extensive ecosystem of vendors and contractors. We believe we have a duty to ensure we can rely on these external resources to do business in ways that are consistent with our ESG values, standards, and practices. We conduct due diligence on prospective suppliers and vendors. Before entering into relationships, we scrutinize supply agreements and negotiate language that addresses environmental and social impacts associated with supply chains. For example, the Supplier Code of Conduct that we use with maintenance, repair, and operations suppliers, requires them to meet our quality standards, comply with applicable laws and regulations, and not violate human rights, workplace safety, or labor laws. 48

As a result of our diligence, we have never had to suspend or terminate a supplier for code of conduct violations. Moreover, we have a team of grower representatives who continually work alongside our agronomy and food safety teams to ensure that our outside growers are well equipped to meet our standards for quality and integrity.

Image courtesy of Whole Foods Market

Customer Spotlight

“

Whole Foods Market and Cal-Organic have long been leaders in the organic movement, delivering high-quality produce to the consumer table each day. We have honored Grimmway Farms and Cal-Organic as our Supplier of the Year, and we continue to value that relationship today as we both strive to provide healthy products for a healthy planet. ERIK BROWN Executive Leader of Produce, Whole Foods Market

” 49

CORPORATE GOVERNANCE ESG IS IN OUR DNA.

Grimmway Farms headquarters in Arvin, CA

rimmway has always taken a comprehensive approach to governance. For 53 years, we have managed our business in the interests of all stakeholders, with the knowledge that realizing our mission demands accountability, responsibility, and respect from everyone on our internal and external teams.

With 65 commodities, all grown in the USA, we recognize that a company of our scope and scale must remain rooted in our core values while evolving and evaluating our systems, processes, decisions, and community engagement to meet and reflect the needs of a changing world.

In their all-too-short but incredibly high-impact lives that touched so many, Rod and Bob Grimm built this enterprise from a small produce stand into a global supplier and industry leader. They did so by adhering to a basic premise: “Do the right thing, and business will grow and prosper.” That philosophy is as prevalent today as it was at our founding in 1969 and continues to guide the next generation of leadership and owners.

Stakeholder Engagement AND Communications Honesty and integrity underpin our efforts to keep our stakeholders proactively informed. Grimmway is committed to transparency surrounding our farming and business operations and strives to communicate proactively with both internal and external audiences. We engage with a range of stakeholders in a variety of ways to share information about our business and our ESG activities and metrics.

STAKEHOLDERS • Consumers

• Investors

• Current and Prospective Employees

• Industry Peers

• Labor Contractors

• Advocacy Groups

• Customers

• Policymakers

• Suppliers

• Media

COMMUNICATIONS • Industry and Government Certifications

• Food Safety and Quality

• Community Philanthropy and Impact

• Labor Policies

• Corporate Governance, Policies, and Procedures

• Occupational Safety and Health

• Education and Professional Development/ Upskilling

• Pesticide Use

• Employee Policies and Benefits • ESG Reporting and Metrics • Ethical Business Practices • Farming and Sustainability Practices

• Packaging and Labeling

• Precision Agriculture • Business Policies and Processes • Transportation • Waste Management and Diversion

Face-to-Face: CEO Annual Town Halls Two-way communication is paramount to understanding each other — and our business.

Gold and red beets

A culture of mutual respect and trust is built from the top-down, and the bottom-up. Each year, President and CEO Jeff Huckaby and members of senior leadership meet face-to-face with every available Grimmway employee – timing these Town Halls so they are inclusive, regardless of location or shift worked. No question or topic is off the table. These meetings are conducted without supervisors present, to encourage an open and honest dialogue, and frequently yield great insights for management from those who are closest to the work, and the customer. As an essential business, the threat of COVID-19 forced this tradition to be paused in 2020. However, meetings began again in 2021 under strict health protocols, helping to keep employees informed and connected.

Ethical Labor Practices It is our responsibility to ensure fair treatment of workers and respect for their rights. Grimmway maintains written policies that clearly delineate employees’ rights and responsibilities, grievance procedures, and anti-harassment and anti-retaliation rules. This information is provided in employee handbooks and state supplements as required and published in English, Spanish, and Punjabi where needed. Certain legal rights are also communicated through multilingual workplace postings. The company is currently translating all of these materials into Punjabi. The Employee Relations Department is part of the Human Resources Division and provides oversight and assistance with all employee-related matters, including addressing employee complaints. Employees may direct complaints to our Employee Relations staff with the option to remain anonymous. Complaints are documented and recorded and, as necessary, reviewed by in-house legal counsel to ensure compliance with state and federal laws. The Employee Relations Department is fully accessible to all employees. It ensures an open line of communication with company personnel, contractors, suppliers, and customers. Multilingual staff is available in-person, by telephone, designated email, and through an outsourced Fraud and Ethics Hotline, which is designed to make employees, vendors, visitors, or other stakeholders comfortable reporting any ethical concerns to an independent third-party provider. Reports are reviewed, investigated, and addressed.

SUPPLIER CODE OF CONDUCT (SCOC) As cited in previous sections, vendors and suppliers used in maintenance, repair, and operations are required to adhere to a strict code of conduct. Among the requirements: • Forced Labor: Forced or compulsory labor will not be used in the manufacture, warehousing, handling, or transportation of goods. • Child Labor: No supplier will employ individuals younger than the legal age for employment. • Violence and Harassment: Workers should not be subject to violence or harassment of any kind. • Facility Audits: The company can audit each facility tied to the sourcing of materials supplied to Grimmway to ensure compliance with company policies. • Environmental Responsibility: Vendors must adhere to all local, state, and federal environmental laws.

Processing radishes

BUSINESS ETHICS As detailed in the Employee Handbook and Supplier Code of Conduct, all Grimmway employees, suppliers, contractors, and customers are responsible for upholding the company’s high ethical standards and complying with all applicable state and federal laws and regulations. These expectations extend to the highest levels of the company, with the Board of Directors having risk oversight for these matters. Grimmway adheres to the Foreign Corrupt Practices Act and has policies in place addressing such subjects as food safety, licensing, privacy, trade, cybersecurity, and responsible sourcing.

RESPONSIBLE SOURCING Grimmway is fortunate to have a long-standing, large and diverse network of suppliers who support our business to grow and deliver the healthiest, freshest produce to consumers around the world. We engage suppliers who share our standards and expectations for quality and efficiency, and we do not rely on any

single supplier for key products or services. This approach to sourcing has enabled us to effectively manage supply chain shortages and challenges caused by COVID-19 and guarantee a steady supply of business-critical materials.

CYBERSECURITY AND DATA PRIVACY In today’s technology-driven world, Grimmway is committed to protecting the information of our employees, suppliers, customers, and consumers. We adhere to transparent data privacy policies and procedures to govern and protect any personal data we may collect on our website or through other digital channels. Further, to protect our global business operations we have established procedures for responding to data incidents and cyberthreats, including when and how to engage with internal management, stakeholders, and law enforcement.

LEADERSHIP JEFF HUCKABY President and Chief Executive Officer

Jeff is a fourth-generation farmer with deep roots in the produce industry. He has been with the company since 1998 and brings more than 30 years of experience in farming management. Before becoming President and CEO in 2016, he served as Executive Vice President and oversaw sales, production, engineering, and farming for all Grimmway products. His leadership has been integral in establishing Grimmway’s global organic business and lead position in the category. Jeff is a member of the California State Board of Food and Agriculture (CDFA), the United Fresh Produce Association Board of Directors, the College of Agriculture Advisory Council at California Polytechnic State University, San Luis Obispo, and a past member of the USDA Fruit and Vegetable Industry Advisory Committee. Jeff was also named “2019 Produce Man of the Year” by The Packer magazine and the “2020 Organic Farmer of the Year” by the Organic Trade Association (OTA). He holds a Bachelor’s degree in Land Management from California State University, Bakersfield and was inducted into the CSUB Alumni Hall of Fame in 2019.

RANDY FURTNER Chief Financial Officer

Randy serves as Chief Financial Officer and directs Grimmway’s finance, accounting, and information technology departments. He has an extensive background in financial leadership positions at large, publicly traded agricultural companies and a proven track record of achieving financial operating excellence. His diverse experience in food product industries includes roles with Trident Seafoods, CTI Foods, ConAgra Foods, and Lamb Weston. Randy holds a Bachelor’s degree in Business Administration from the University of South Carolina, Coastal as well as a Master of Business Administration and a Master of Professional Accounting from the University of Washington.

TODD JONES Chief Operating Officer

As Chief Operating Officer, Todd directs farming, harvesting, and agricultural support operations across all divisions at Grimmway. He also oversees agricultural sciences and services as well as farm innovation and technology for the company. Todd has more than 30 years of experience managing large farming operations for a variety of crops across growing areas in the U.S. and worldwide. Most recently, he was the President of the Row Crop Division of Ag Reserves in Washington where he held multiple leadership roles. He is a second-generation farmer and holds a Bachelor’s degree in Agricultural Economics from Utah State University.

JEREMY LADLE Senior Vice President, General Counsel, and Corporate Secretary

As Senior Vice President, General Counsel, and Corporate Secretary, Jeremy manages and coordinates legal services, risk management and compliance across all departments at Grimmway, while also overseeing Legal, Food Safety, and Safety and Corporate Affairs. Jeremy plays an integral role in advising on organizational governance in support of the company’s long-term goals and objectives, and adherence to company values. He holds a law degree from the University of Idaho, a Master’s degree in Agriculture Economics from Purdue University and a Master of Business Administration from Indiana University.

SARA OLIVER Chief People Officer

As Chief People Officer, Sara partners with executive leadership to develop and execute growth strategies across all departments at Grimmway. Sara directs global human resource policies and oversees talent acquisition, employee engagement and retention, total rewards, and learning and development, including managing the recent launch of Grimmway University. She also is responsible for Government and Public Affairs, and oversees the company’s Environment, Social, and Governance (ESG) reporting. She has worked for Grimmway for more than 25 years and was previously the Vice President of Human Resources. She holds the SHRM Senior Certified Professional (SHRM-SCP) HR credential and a Bachelor’s degree in Economics from the University of California at Davis.

ERIC PROFFITT Executive Vice President, Sales and Marketing

Eric oversees all sales and marketing functions across Grimmway’s retail, foodservice, and industrial divisions. He has worked for Grimmway for more than 27 years and has been an important contributor to the company’s dynamic growth in both the organic and conventional sectors. With experience leading all facets of sales, marketing, innovation, and product development, he has a deep understanding of Grimmway’s products, processes, and partners. Eric holds a Bachelor’s degree in Agribusiness with a concentration in Marketing from California Polytechnic State University, San Luis Obispo.

NOTES ON THIS REPORT

This document represents Grimmway’s first formalized reporting on our Environment, Social, and Governance actions and outcomes for the year 2020, with some metrics expanding on our activities and impacts in the first half of 2021. Moving forward, Grimmway is committed to issuing yearly ESG reports and to regularly updating and communicating our sustainability goals and progress to stakeholders. We intend to work toward adhering to Global Reporting Initiative (GRI) Standards that encourage global comparability and quality on these ESG impacts, thereby enabling even greater transparency and accountability. For additional information on any of the information contained in this report, please contact: DANA BRENNAN Vice President of Government and Public Affairs Grimmway Farms PO Box 81498 Bakersfield, CA 93380 DBrennan@grimmway.com (661) 855-8985 grimmway.com Published November 2021

G R I M M WAY FA R M S | P O B OX 8 1 4 9 8 | B A K E R S F I E L D, C A 9 3 3 8 0 Grimmway.com This report was printed on 100 percent post-consumer waste paper made in the U.S. using 100 percent wind power energy.