Karma Drinks 2022-2023 Impact Report

2022/2023

KARMA DRINKS

WHAT GOES AROUND

COMES AROUND 2022/2023 KARMA DRINKS IMPACT REPORT

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IMPACT REPORT

SO FAR, PEOPLE LIKE YOU HAVE BOUGHT 35,074,029 KARMA DRINKS IN 28 COUNTRIES SO THE KARMA FOUNDATION CAN WORK WITH FARMING COMMUNITIES IN 8 VILLAGES IN SIERRA LEONE TO BUILD 7 BRIDGES, AND 2 NEW ROADS, SEND 135 GIRLS TO SCHOOL EACH YEAR & 4 GIRLS TO UNI, AND FUND 9 TEACHERS IN 4 SCHOOLS, EDUCATING 764 CHILDREN IN 6 NEW CLASSROOMS. WE’VE SUPPORTED 200 FARMERS TO REVIVE FOREST FARMS AND PROVIDED SEED FUNDING TO 70 LOCAL ENTREPRENEURS. 155 PEOPLE HAVE RECEIVED LIFE-CHANGING MEDICAL SUPPORT THROUGH THE HEALTH FUND AND 7 VILLAGES HAVE FIXED WATER PUMPS FOR CLEAN, SAFE DRINKING WATER. WITH YOUR CONTINUED HELP, WE CAN DO SO MUCH MORE.

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CELEBRATING

DO-GOODING YEARS

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IN A WORLD OF GREAT CHANGE,

ALBERT TUCKER, CHAIR OF THE KARMA FOUNDATION, BEING GREETED BY MEDIWA, CHAIRMAN OF THE TCC (TIWAI COMMUNITIES COMMITTEE)

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BE THE CONSISTENCY. At Karma Drinks, we’re here for the long ride.

We started small, built slowly and have celebrated our farmers for a decade; always paying Fairtrade prices for organic ingredients that help protect the planet.

While others are busy chasing unicorns, we’re proud to be a zebra. We’ve earned our stripes and held true to our values of humanity, respect, craft and care.

This 2022 impact report highlights the variety of projects that we’ve been quietly working on with our cola growing communities in Sierra Leone. For ten years, we’ve put our money where our mouth is and forged relationships built on respect, trust and delivering long term sustainable change.

Call it Karma.

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IMPACT THAT’S HERE TO STAY THE KARMA FOUNDATION APPROACH & RESULTS FROM APRIL 2022 - 2023 The Karma Foundation is unique in its approach and ways of working. Income for the Foundation comes from a donation of 1% of revenue from every Karma Drink sold globally because we thought it was time the people who discovered cola got a little something back from the world’s most popular drink.

How those funds are allocated and monitored is dictated by the communities who we buy our cola nuts from. These 3000 villagers live across 8 communities in the Gola rainforest of Sierra Leone, where we’ve been consistently working and trading with for 10 years.

The communities gather together once a year and discuss progress on projects, communal proposals and programmes they’d like to focus on for the year ahead. We’ve always believed that they know what they really need to make a noticeable impact to their own day-to-day lives, and not have decisions handed down to them by a bunch of us sitting around in an office thousands of miles away. You’d be surprised how rare that approach is.

The local team employed by The Karma Foundation visit and work alongside the communities every week, and report into the Foundation Chairman; Albert Tucker. Albert works with us in London, and updates us on which houses have got new roofs, which subjects the girls are studying in school and shares other rich stories from life in the villages.

Albert visits a minimum of once a year to plan, monitor and work alongside the communities. Everyone is always eager to contribute to what happens across the different projects; we might provide the funds, but the villagers bring the manpower and the tools to make it happen. This is how The Karma Foundation works sustainably and always in the long term interest of the Tiwai villages.

The Karma Foundation has built up a strong relationship over the last 10 years build on trust and understanding, and is the magical link between our consumers and the communities who grow the cola we all enjoy.

ALBERT ON THE MAKENNEH BRIDGE, ONE OF OUR FIRST PRO

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OJECTS, BUILT BY THE KARMA FOUNDATION IN 2013

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IF YOU EDUCATE A MAN, YOU EDUCATE AN INDIVIDUAL. IF YOU EDUCATE A WOMAN, YOU EDUCATE A NATION. ~ AFRICAN PROVERB

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EDUCATION Each year 764 children (both boys and girls) attend the 4 schools in the communities supported by The Karma Foundation. This is made possible through supporting and training the teachers, providing bursary places for the students and maintaining and building schools.

10 years ago there were just 136 children across 3 schools. Together, we’ve built a 140% increase in school attendance over the last decade In 2022, like every year, 135 girls from the 8 communities have been supported to attend across the 4 schools.

The Karma Foundation also funded salaries for 9 teachers this past year and 2 of those teachers have been funded in completing national teaching qualifications.

There are now 4 young women supported by The Karma Foundation to attend University.

They are: Mamie Lukullay who is studying Agricultural Communications and Media, Mariama Komeh who is completing Teacher Training, Hawa Alie studying SRN Nursing and Kadija Kanneh who is studying to become a Community Health Officer.

Significant results have been witnessed across the schools within the communities. Sahun school (seen below) for example saw 22 children take their secondary school exams, with 18 passing, 14 of which were girls. This is a tangible reminder of why the bursary places for girls are so important.

The health fund was started 3 years ago, it was

NEWEST SCHOOL IN SEGBWEMA SCHOOL CHILDREN QUEUING FOR CLASS IN SAHUN

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FOR W CHIEF KADIE’S IN-PROGRESS HOUSE BEING BUILT.

YOU’VE EMPOWERED 135 GIRLS TO GO TO SCHOOL, HELPED 4 PURSUE THEIR DREAMS AT UNI, FUNDED 42 FEMALE ADULT LITERACY CLASSES, SUPPORTED 8 NEW FEMALE ENTREPRENEURS & 52 EXISTING, HIRED 2 FEMALE TEACHERS IN 4 SCHOOLS, PROVIDED 14 LIFE-CHANGING HEALTH FUNDS FOR WOMEN AND HELPED BUILD A HOUSE FIT FOR A CHIEF, AFTER THE PASSING OF CHIEF KADIE’S HUSBAND AND OUR DEAR FRIEND, CHIEF HINDOWA, IN 2022.

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WOMEN

KADIJA KANNEH (L) & MAMIE LUKULLAY (R), TWO OF THE WOMEN SPONSORED BY THE KARMA FOUNDATION GOING TO UNIVERSITY, WITH THEIR PROUD FATHERS. KADIJA WILL BE STUDYING TO BE A COMMUNITY HEALTH OFFICER WHILE MAMIE WILL BE STUDYING AGRICULTURAL COMMUNICATIONS AND MEDIA.

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HEALTH & WELLBEING designed for people with serious ailments who couldn’t afford to pay for treatment.

Since then, 155 people have accessed the fund for life-changing treatments and 28 people have benefited from the health fund in the last year.

The first year of existence of the health fund saw a large number of hernia operations.

Hernias are common because of the physical work involved for many of the people in the communities. This fund enabled people to access care to have this simple surgery meaning their lives and livelihoods could be protected.

INFRASTRUCTURE In 2022, the construction of 1 new school in Segbwema village was completed. Previously, children had to walk on a 12 mile round-trip through rainforest, over narrow tracks and across dangerous bridges over the fast flowing river to access their education. The significance of a colourful school right on their doorstep will impact lives for years to come, and is made even better with 3 new classrooms, and office and toilets.

Construction of 2 new bridges has also been completed in the last year, connecting Segbwema to the other communities through the rainy season.

The communities also now have tools for road building and maintenance, both of which are essential to promote trade.

WOMEN MANAGING THE WATER PUMPS FUNDED BY THE KARMA FOUNDATION.

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THE ELDERS OF SAHUN MEETING AND THE WOMEN GOING ABOUT THEIR DAILY LIFE

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SUSTAINABILITY The Tiwai community is located in one of the last natural stretches of the great West African rainforest : The Gola Rainforest. This dense tropical habitat used to stretch for miles across multiple countries, but due to civil wars and deforestation has shrunk dramatically over the last decades.

The communities fiercely protect their natural environment and it’s inhabitants.

From pgymy hippos, 11 species of primates, birds, vast numbers of trees and plants, the Karma Foundation helps support the teams in sustainably caring for this precious corner of our planet.

WOMAN PROCESSING PALM KERNELS INTO ARTESENAL PALM OIL FOR LOCAL SALE AND CONSUMPTION, LARGELY USED FOR COOKING IN SIERRA LEONE. IN THE COMMUNITIES, PALM OIL IS NOT MASS-FARMED BUT IS A PART OF LOCAL LIFE AND HAS BEEN AROUND FOR MANY YEARS.

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GOVERNANCE & ACCESSIBILITY The Karma Foundation works with local people and our team on the ground to deliver a variety of training for villagers, from Gender Equality and Social Inclusion, to Good Governance, Citizens Voice and Action, Business Management and Community Mobilisation.

Learning these skills helps the villagers manage resources, negotiate, to do business and monitor the Karma funds. For example, after receiving training from Karma, a local woman was able to set up funding and start her own business.

There are low levels of literacy in the village, but this doesn’t hinder the training as it’s delivered in an accessible way. This is all part of setting people up for success, and working in a long term and sustainable way with the communities.

The local team is made up of five people (two full time and three part time). They ensure projects are being well implemented and managed, and that the communities are well involved and informed.

The chairman, Albert Tucker, oversees the whole Karma Foundation and has been a vital figure for both Karma Drinks, and the communities, for the last ten years.

FANTA, MEMBER OF THE KARMA TEAM, INTERVIEWING ONE OF THE WOMEN FROM KAMBAMA ON WOMEN’S HEALTH INITIATIVES IN THE AREA.

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THE EXCITED PEOPLE OF SAHUN CELEBRATING THE ARRIVAL OF THE TRUCK, ACCIDENTALLY DISRUPTING A COMMUNITY MEETING.

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LOCAL ENTERPRISE & SUSTAINABLE LIVELIHOODS The big news of 2022 has been the purchase of a new diesel truck for the communities.

This enables communities to run their own affordable transport business and get increased income from goods by transporting and selling them in the larger town markets where they can get up to three times the price on their produce than they will get locally.

This investment is potentially very significant for the communities at a time where transport costs are at their highest. The truck allows the communities the independence to get around the high cost of local transport and creates freedom for them to trade.

Someone from each village will work with their community to organise the use of the truck to maximise profits. Simply put, you can fit more on the back of a truck than on the back of a mo-ped, allowing for greater cost efficiencies and scale.

The vision is for the truck to be self sufficient in the running and maintenance. The communities already want to buy another truck in three years so plan to save a portion of their profits over the next three years to make this possible.

Karma continues to support a revolving Entrepreneurs Fund that continues to support rolling numbers of entrepreneurs. To date 72 new businesses have been launched with the help of the fund. This fund was set up during the Ebola crisis for the communities to be able to launch and grow new businesses in particularly troubling times. Many of these businesses are focused on wider trade, and are female founded.

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KARMA DRINKS JOINS THE RANKS OF BETTER BUSINESSES IN 2022

FROM BOMA TO B-CORP Our ten year journey working with the cola nut growers in Sierra Leone significantly contributed to our epic 127.4 score and certification from B-Corp.

Here’s how we scored well above the 80 point threshold to certify.

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Customers

Environment

We have a saying ‘what comes around goes around’ and a belief that the more we respect customers buying our drinks at the near end of our supply chain, and producers at the far end, the more we get back.

The Environment section is an external audit of our company’s overall environmental management practices and their impact on the air, climate, water, land, and biodiversity that we all share.

The Customers impact area evaluated how well we look after our customers through the quality of its products and services, ethical marketing, data privacy and security, and opportunities for customer feedback. This area is one for future improvement.

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After 10 years working alongside communities in the Gola Rainforest in Sierra Leone and organic and Fairtrade producers in developing nations, one of the most exciting projects in our sights for the future is continuing to protect and regenerate rainforests. We’re proud to support the communites who are protecting the rainforests and its inhabitant species.

Going through this process has focused us on accurately measuring our environmental impact, especially the potential for further reduction of C02e / GHG along our supply chain and plastic waste.

Community The Karma Foundation played a key role in achieving our B Corp Certification and by meeting the criteria of a ‘Designed to Give’ business impact model, demonstrating the life-changing initiatives supporting the communities who grow Karma’s cola nuts in Sierra Leone.

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Every Karma Drink sold funds projects in education, sustainability, local enterprise and more – for example, 2021 marked the beginning of a new school being built in Segbwema which will save school children walking over 12 miles a day to get a basic education.

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Workers The Workers’ criteria look at how the company contributes to employees’ financial security, health, well-being, safety, career development, and engagement satisfaction.

Reflection on the Worker Impact Assessment highlights some areas where we can lift our game. We’ll continue to foster an inclusive and diverse working environment and share the success of our endeavours with stakeholders through the work of The Karma Foundation.

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In the past 12 months months we’ve donated 26,112 to drinks to charitable causes including food distribution charities such as FareShare and The Felix Project. Karma continues to connect the communities we work with, from consumers, customers and businesses.

Community is Karma’s highest scoring category.

Governance B Lab believes the key to being a business for good is to weave your mission into your company’s cultural and legal DNA by integrating your values into job descriptions, performance reviews, and in Karma’s case, even adjusting corporate governing documents.

Karma achieved almost the full number of points available for this section through making structural changes to formalise the commitment to making a positive impact.

LOO K WHAT YOU MADE US DO

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LOOK WHAT YOU MADE US DO WE DON’T DO IT FOR THE TROPHIES, BUT THEY DO A PRETTY GOOD JOB OF PROVING THAT THE GOOD WE SAY WE DO, GETS DONE. HERE’S A FEW NOTCHES WE’VE ADDED TO OUR DO-GOODING BELT THIS YEAR.

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IT’S GOOD TO B...CORP The B-corp body certifies companies to meet high standards of social and environmental performance, transparency, and accountability.

Social good is integrated throughout the whole organisation.

The Global Vegan Awards, by LUX magazine showcase remarkable businesses who have brought positive change through a plantbased lifestyle, who are contributing to a more sustainable way of living. Karma were awarded Best Ethical Vegan Drinks Brand in the UK and Organic Cola Beverage of the Year 2022 for Karma Cola.

The Supreme Award is presented to an organisation that is performing outstandingly well in all aspects of sustainability. Sustainability is integrated throughout, and they demonstrate a sustained and future commitment to sustainability and an outstanding contribution to New Zealand.

The Great Taste Awards is a prestigious award body made up of expert taste testers who say yay or nay to entries from across the world of Food & Drink. We are super stoked that our OG Karma Cola and Karma Orangeade both bagged a gold star at the 2022 awards, staying true our promise to taste good, and in this case, great!

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The Marie Claire’s Sustainability Awards are a celebration of the brands, organisations, and products that are genuinely implementing change and building a better tomorrow.

We are the proud winners of the Best Ethical Drinks Brand.

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The Social Impactor Award is presented to an organisation that is consistently improving people’s lives through its day to day business practices.

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HUMANS OF KARMA

KARMA DRINKS HAS ITS HQ IN NEW ZEALAND, A SMALL BUT MIGHTY TEAM IN LONDON BUT THERE’S NO DOUBT THAT ITS HEART LIES IN BOMA. Here we celebrate a number of the faces behind The Karma Foundation who plan, oversee and execute the life-changing work within the Tiwai communities. Albert visited Boma in February 2023 with a small production team who were able to capture some memorable moments.

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HANNAH LANSANAH FROM KAMBAMA BOMA, AND HER LOVING HUSBAND, WHO WAS ABLE TO ACCESS THE HEALTH FUND ON HIS BEHALF, GRANTING ACCESS TO LIFE-SAVING TREATMENT.

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MICHAEL,PROJECT MANAGER OF THE KARMA FOUNDATION, AT THE ANNUAL MEETING OF BOMA WHERE WE DISCUSS CHALLENGES AND OPPORTUNITIES FOR THE COMING YEAR.

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SAMUKA, ONE OF THE FARMERS, ACTING AS AN INTERPRETER DURING THE TOWN HALL.MEETINGS ARE CONDUCTED IN ENGLISH, CREOLE AND MENDE.

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CHIEF KADIE AND ONE THE ELDERS OF BOMA PICTURED IN THE FRONT ROW AT ANNUAL TOWN MEETING OF BOMA.

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CHIEF ALUSINE KOROMA OF KAMBAMA HAPPILY PICTURED WITH KARMA ORANGEADE.

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WOMAN FROM BOMA OUTSIDE A GUEST HOUSE.

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CHIEF ALHAJI KOROMA SHAKING HANDS WITH ONE THE VILLAGE ELDERS

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MICHAEL IN SAHUN RIGHT BEFORE MEETING WITH THE SECTION CHIEF, PROUDLY WEARING KARMA MERCH.

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ALBERT AND CHIEF KADIE SHARE A MOMENT AFTER REUNITING FOR THE FIRST TIME SINCE THE PASSING OF THE LATE CHIEF HINDOWA, HER BELOVED HUSBAND.

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The passing of the late Chief Hindowa has been felt deeply throughout the communities. He was a mighty champion of the work of the Karma Foundation and was a key adviser. He was key contributor in all of its achievements and was the first Chairman of the TCC (Tiwai Communities Committee). He was a steadfast and supportive husband to Chief Kadie, who herself is invaluable to the programme. He became a close friend and confidant and was the visionary behind the heritage trail sites to promote tourism and camp bases in the communities. He had found a new lease of life extending his farming activities, promoting the heritage sites and personally building a house fit for a chief in the village.

We at Karma Drinks will sorely miss his, wit, charm, vision and energy. Rest in Peace, Chief Hindowa.

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TRANSFORMING NEW ZEALAND KARMA DRINKS RECOGNISED AS SUSTAINABILITY LEADERS ON THE GLOBAL STAGE

Given the last two years and the uncertain times we are in, it’s more important than ever to celebrate the sustainability achievements of organisations and individuals.

Collectively, the nine winners are leading the way, and it was great to see such diversity of action among them – including impact from organisations focusing on local issues as well as the outstanding work of purpose-led Karma Drinks, which are now recognised as a leader on the global stage.

- Rachel Brown (CEO, Sustainable Business Network).

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FROM L TO R: NICOLA AIREY (MAS HEAD OF BRAND AND PARTNERSHIP), OLIVER JEPSON (NATIONAL MANAGER NZI), BEN DANDO (CEO, KARMA DRINKS), CHRIS MORRISON (FOUNDER, KARMA DRINKS)

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GOOD KARMA, IT’S IN OUR FOUNDATION COMMENTS FROM THE JUDGES OF THE SUSTAINABLE BUSINESS AWARDS

Sustainability IS Karma Drinks’ core business, it is fully integrated through its value chain. From the ethical and environmental sustainability of Karma’s raw materials, to their efficient operations, carbon positive goal, diverse and inclusive people practices, consideration of sustainable packaging and freight, and giving customers the ability to amplify their social impact through the Karma Foundation, which receives 1% of revenue from the sale of its drinks, supporting 3,000 people in the communities in Sierra Leone, who grow Karma’s ingredients. The Foundation’s motto is Trade not Aid, with the funds being used to help build independence and long term resilience, for example, funds have been used for things like school teachers, educating girls, microloans, building schools, and bridges, supporting farmers to grow their product, fresh water and sanitisation.

Karma’s drinks are tasty (they have won awards!) and it is New Zealand’s top ranking B Corp, and in the top 5% in the world, recognising the completeness of Karma Drink’s business for good.

It is truly inspiring to read this application.

There is a genuine depth of integrity and sincerity throughout operations. Karma Drinks exemplifies what a ‘value chain’ can be creating real social value for communities and environmental value for the earth, all the while creating a valuable product.

A great kaupapa of ‘delivering trade, not aid’, where communities where the cola nuts are grown are in full sovereignty of the funds they generate and are gifted through The Karma Foundation.

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FROM L TO R: MINISTER JAMES SHAW, BEN DANDO (CEO, KARMA DRINKS), BRI TITHER (SBM, KARMA DRINKS), OLIVER JEPSON (NATIONAL MANAGER NZI), CHRIS MORRISON (FOUNDER, KARMA DRINKS), RACHEL BROWN (CEO, SUSTAINABLE BUSINESS NETWORK).

KARMA DRINKS REIGNS SUPREME AT THE 2022 SUSTAINABLE BUSINESS NETWORK AWARDS, TAKING HOME THE SOCIAL IMPACTOR AND THE OVERALL TRANSFORMING NEW ZEALAND AWARD.

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2 MOVEMBER FOUNDATION

Intercepted from oceans. Redesigned for adventure. Cornwall brand Waterhaul, create chic eyewear and outdoors equipment made from 100% recycled fishing nets.

Movember fundraisers are a global community of fired up Mo Bros and Mo Sisters making a difference in mental health and suicide prevention, prostate cancer and testicular cancer. Team Karma raised NZ$1180 this Movember.

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3 CHAPELLE SILK SLIP BY RUBY

4 THE SUPREME AWARD BY SBA

Founded in 2002, RUBY is an eminent fashion label based in Aotearoa, best known and loved for the mutually nourishing relationship it has with its community, and the way its designs embody those who wear them.

Karma Drinks joins the ranks of proud Kiwi changemakers as the 2022 winner of The Supreme Award (Transforming New Zealand). sustinable.org.nz

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1 WATERHAUL SUSTAINABLE EYEWEAR

ALBERT TUCKER AND MICHAEL ON THEIR WAY TO THE ISOLATED VILLAGE SEGBWEMA AFTER A 6 MILE HIKE ACROSS 2 ISLANDS AND A RIVER CROSSING TO SEE THE NEWEST SCHOOL BUILT BY THE KARMA FOUNDATION AND THANK THE COMMUNITIES FOR THEIR HARD WORK.

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UP NEXT WE SAT DOWN WITH ALBERT TUCKER, CHAIR OF THE KARMA FOUNDATION, AND ASKED HIM ABOUT HIS THOUGHTS AND HOPES FOR THE FOUNDATION’S FUTURE.

Do you have any standout moments from the last year?

The foundation supported 2 young women to go to university (making it 4 total). This has given immeasurable inspiration to the parents and young girls in the community.

technology, computers etc for the schools and business is a concern for the communities dayto-day operations.

There is a need to grow the agroforestry activities and for more direct resources to the communities in the front-line of protecting and growing the forests sustainably.

What would you like to be celebrating from the communities this time next year?

The completion of the school in Segbwema Village is huge! Having a well-equipped building that is designed for children, with classrooms for different age groups and a working toilet all goes a long way towards providing a stable learning environment for students and teachers alike.

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What are your worries for the year ahead?

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The foundation has supported the community with a truck to enable affordable and accessible transport for goods from the community to main markets where they will receive an uplift in income and generate income for their own programme of activities.

This needs to be managed very carefully to ensure the targets they have set are met.

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A successful proof of concept of the transport and agriculture business would be a great achievement.

To start work on electric transportation and hubs in the communities would be another great milestone.

Securing resources and starting to implement a sustainable agroforestry programme.

More children going on to further education.

Supporting Chief Kadie to complete what her husband started.

The cost of living crisis is very real in the communities and the challenge will be to ensure the communities continue to develop through sustainable means. The lack of electricity and access to materials e.g.

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IN LOVING MEMORY CHIEF HINDOWA

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