Sustainability Report | The Exotic Blends

Ecuador is one of the 17 megadiverse countries in the world and the Andean “Chocó” is the 7th Biosphere Reserve of Ecuador. With an extraordinary biodiversity, Ecuador is home to the only tropical rainforest in the South American Pacific. Habitat to over 100 species of mammal.

Photo: Company photo archive. Tropical Forest of the Andean “Chocó”.

Photo: Company photo archive. TEB industrial facility, Santo Domingo / Ecuador.

Our first SUSTAINABILITY report has been elaborated using the GRI standards: Referenced Report.

This report has been made thanks to CEMDES Competitive Business Program of Ecuador.

Message from the General Manager

During 2021 we operated with resilience in confronting the most complicated environment in our history. 2020 began with COVID-19, to which was added the crisis of ports and shipping companies, which led to price increases and breaks in the supply chains of a large part of our resources.

Nevertheless, we decided to keep the sustainability projects active, taking them above and beyond, with a disciplined use of our working capital, and by prioritizing on the strategic objectives established in the annual strategic plan.

In The Exotic Blends -SAMAI- , we create value through the adoption of the “ESG” practices (Environment, social and governance), supported by a team of proactive and motivated people, seeking to generate the loyalty of our customers. It is from this standpoint that we can begin to assist our “stakeholders” or groups of interest in the face of the many current challenges, such as social inequality and climate change. This is done in the following ways:

• With clear goals towards surpassing the Carbon Neutrality indicators within our operations.

• With clear goals towards compensation for reduction, reusing, recovery and recycling.

• Building a more inclusive society and seeking, with our collaborators, the best way to face the economic and psychological impact of the Covid-19 pandemic.

• Giving opportunities and work stability to our team.

• Building a society that is more informed about the environment through education at schools in the province of “Santo Domingo de los Tsáchilas” - Ecuador.

• Leading consistent financial results for our shareholders, with a primary focus on quality of all our products through continuous improvement with a focus on efficiency and austerity in the use of resources.

Good corporate governance is important to The Exotic Blends -SAMAI. The company is committed to maintaining and strengthening its governance under the highest standards.

Our governance is focused on identifying and measuring, with anticipation, potential future risks in order to mitigate them in advance, in any place where we operate, and thus achieve sustainable development.

More than an issue of sustainability , we are strongly committed to achieving a Corporate Culture of Integrity, seeking to find a positive Net contribution for society and all our stakeholders or “groups of interest”.

Juan Pablo Molina

The Exotic Blends. Co General Manager

Photo: Company photo archive.

Organization Profile

102-1

The Exotic Blends -SAMAI- was founded in 2001 by a group of passionate industrialist snack lovers. The main operation is in Ecuador, where the magic from the tropical rain forests of the Andean “Chocó” and the Amazon, is exported, through our sustainable, 100% quality products, to customers in over 40 countries around the world.

Our name engulfs our passion for Ecuador 's culinary traditions and our respect for its generous land. The Exotic Blends -SAMAI- has come a long way and we are proud to present our main milestones:

Photo: Company photo archive. TEB industrial facility, Santo Domingo / Ecuador.

The Exotic Blends - SAMAI, was born.

First export to the USA.

First export to Spain, Jamaica and Puerto Rico.

First export to Chile, Holland and Switzerland.

First export to Barbados and first white label export to the Caribbean.

Completion of construction and beginning of production at the “Santo Domingo de los Tsachilas” facility on km 13.5 - La Concordia Rd. ISO 22000 Certification from the ACG group.

First export to the United Kingdom.

First export to Canada.

First export to Turkey, and first export in bulk to the USA.

First export to China, Belgium and Panama. “K” Kocher certification-Rabbi Don Yoel Levy, NY.

First export to Saudi Arabia and Mexico.

2002 2009

2006 2005 2010

2007

Adjut Kosher Pareve for SAMAI products.

Photo: Company photo archive.

THE EXOTIC BLENDS Co. | SUSTAINABILITY REPORT 2021 10 Photo: Company photo archive.

SMETA 6.0 certification by CEDEX UK.

ISO 22000 certification by SGS-Ecuador. “Non GMO project” certification.

First Public-Private Cooperation Agreement with the GAD of Santo Domingo for Environmental issues.

Creation of the Biocorridor “El Armadillo”.

Optimization of the packaging process for the Snack Pack's line.

Expansion of the semi-finished product warehouse and installation of racks to optimize storage.

Gluten free certification with NSF.

Development of the “Vegan Friendly” and “Nut Free” logos.

Environmental Award in the Agroindustrial category awarded by the Environmental Authority of Santo Domingo de los Tsáchilas- Ecuador.

Modernization of the SAMAI logo on all of its packaging.

Export-des Project of the European Union and CORPEI. Organized management of the COVID-19 pandemic.

First The Exotic Blends - SAMAI ethics and behavioral code agreement.

Measurement of our company’s carbon footprint.

Inclusion of the company in the United Nations Global Compact for the environment.

Pilot project for the generation of photovoltaic solar power at the industrial facility.

Migration of the ISO 22000 V.2005 to V.2018.

First export to Jordan.

Photo: Company photo archive.

Scope of activities, brands, products and services.

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The Exotic Blends -SAMAI- is a company dedicated to the processing and export of natural snacks in a sustainable manner. 100% of all our products are exportable, leading to more than 35 million units, of all varieties and flavors, being sent worldwide every year through a network of international distributors.

Our main brand is “SAMAI”, which means “breath of the rainforest” in Quichua and our slogan is “Experience Rainforest Magic”. We give consumers the confidence that the origin and ingredients are locally and sustainably sourced. Behind our brand there is the important work of protecting the ecosystems and helping the community, benefiting children and adults.

Our entire operation is Carbon Negative, from the soil to the bag, and we are one of the few companies in Ecuador that operates under an Ethical Businesses Certification from SMETA – CEDEX, UK. That's why we say that SAMAI “Experience Rainforest Magic”, is much more than just a healthy snack.

Photo: Company photo archive. Sedano´s Supermarkets, Miami – US.

Photo: Company photo archive. Feria NACS, Chicago. 2021.US.

Our headquarters are located in the city of Quito, Ecuador-South America. Quito, located in the Andes mountain range, was the first to be declared a Cultural Heritage of Humanity Site by UNESCO. Our address is Av. Eugenio Espejo 2410 y Rincón del Valle, Centro Comercial Plaza del Rancho, Miravalle 1. The industrial facility is located 3 hours from the city of Quito in the province of “Santo Domingo the los Tsachilas”, kilometer 13.5 via La Concordia.. It is in the foothills of the Andean “Choco” forest, which

Coverage (102-3) (102-4) (102-6)

is one of the most biodiverse regions on the planet, and in turn the most exposed to deforestation and the deterioration of its ecosystems. In 2021, the industrial facility processed a total of 1.6 million kilograms of chips, sharing with the world the flavor and magic of the Andean “Chocó” tropical forest and the Amazon.

100% of The Exotic Blend’s products are exported across the world mainly with the SAMAI brand and other white labels. This joint effort between the company and its international distributors allows for our presence in over 40 countries. The following regions/countries are the locations of our main operations:

North America: 63,7% Europe: 19,4% Other parts of America and the Caribbean: 16,9%

Our main clients are international snack distribution chains/retailers, who are responsible for delivering the flavors of the Andean “Choco” tropical forest and the Amazon to a wide range of responsible consumers.

Clients can work directly with our brand “SAMAI”, or ask us, based on our principles and values, to

develop white label products so that they can reach their consumers with their own proposals. Examples of these are “Shegraa” and “Andean Gourmet”, the first being related to a woman’s strength and their contribution to the world, and the second with quality gourmet foods of Andean origins.

Photo: Company photo archive. San Francisco Church and Square, Quito / Ecuador.

Type of company and legal structure

The Exotic Blends -SAMAI- is incorporated under the laws of Ecuador as a private company whose legal form is a Limited Company.

market sectors

• Logistics

• Retailers

• Food and Beverage Products

Organization Size

102-5 102-7

Total number of employees 104

Total Net worth

Debt Net worth 1.685.740 USD 1.620.928 USD

Total number of operations 5 Number of products or services that have been provided 3.306.668 USD

In order for The Exotic Blends-SAMAI- to guarantee the safety of its products for customers, it has implemented an ISO 22000 V-2018 certification, which specifies 5 main operations to be monitored by a Food Safety Management system.

These are: i. Purchase and reception of raw materials, ii. Peeling, iii. Slicing and frying, IV. Flavoring, V. Packaging and Export

Net sales 6.203.490 USD

Units sold 35 Millons/año

The Exotic Blends -SAMAI- has a significant number of finished and semi-elaborated products that are exported as a whole to other countries around the world. These range from sleeves of 12 units weighing 34g of multiple flavors, to 12Kg bags of semi-elaborated products of a single flavor.

Each distributor or client has, according to the market where sales will occur, different formats. Each country or region has different requirements set by its sanitary authorities, which must be met by the company.

Information regarding employees and other workers

The majority of the employees at The Exotic Blends -SAMAI- have full time contracts. The company is 100% in compliance with the labor laws of the country.

The data was collected based on the information requirements requested by the GRI indicator 102-8, said information was organized for the years 2019, 2020 and 2021 by the company's Human Resources Area.

There are no significant variations during the period of time analyzed.

Sex Male Female Total

Region Ecuador Total

Male Female Total

Permanent 71 33 104

Permanent 104 104

Full-Time 71 33 104

Temporary 0 0

Part-Time 0 0 0

During 2019 and 2020, The Exotic Blends -SAMAI invested in modernizing and optimizing it’s frying lines, allowing it to expand from 115Tm of chips to 175Tm, under the parameter of 1 shift of 10 hours per day and 20 days monthly production..

This expansion took place in the midst of the Covid-19 pandemic, which in turn meant additional investment in industrial safety and health precautions for all employees.

It should be noted that the company, despite the contraction of the market, did not stop its operations or lay off personnel.

102-8 102-10

Significant changes within the organization and its supply chain

In 2020, the Edu-information center “Casa Bosque de Agua - CBA'' was built. Additionally, some scientific concept studies of the Biorrorridor “El Armadillo'' were developed, the first actions towards reforestation were made, high-resolution geo-positional photos were obtained of 7.000 hectares; and an environmental training guide, in E-Book format, was created and developed. All of this was in co-investment with the European Union.

THE EXOTIC BLENDS Co. | SUSTAINABILITY REPORT 2021 15 Temporary 0 0 0

Ethics and Integrity

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Values, principles, standards and rules of conduct.

The Exotic Blends -SAMAI- is a company with 100% compliance in all areas and in all the countries where it operates. It is founded on 6 values that are:

1. Integrity, 2. Equality, 3. Loyalty, 4. Leadership and vision, 5. Prevention and 6. Clarity in measurement and information.

To transmit our values and principles, we have established 7 tools that put in context, set the limits and establish the procedures to follow in relation to the organization's standards of conduct.

Norms of behavior and ethics between the "stakeholders". This is an internal agreement of the organization that is signed by all our members and reflects the principle of 100% compliance and 0% tolerance for misconduct.

Confidentiality agreements on product development, equipment, plant layout, recipes, flavors, brands and other elements related to the company's intellectual property.

Internal regulations approved by the Ministry of Labor Relations.

Electronic communication and information agreement. Allows for communication and training with employees through a WhatsApp Business system.

SMETA certification. It is a SEDEX Members Ethical Trade Audit (SMETA) which is one of the most widely used ethical audit formats in the world. It corresponds to the needs of buyers who want to know under what conditions a certain consumer good is produced.

Company management committees.

Relevant laws (labor, corporate) both of the Republic of Ecuador, and of the countries with which we develop commercial activities.

Photo: Company archive: “Casa Bosque de Agua” Santo Domingo - Ecuador.

The Exotic Blends -SAMAI- considers that human relations are sensitive, for this, there is permanent legal monitoring advice so that justice and organizational values are safeguarded, in this sense, the company acts with 100% compliance and 100% advice in every activity that it carries out within its daily procedures.

The agreements and mechanisms of governance with regard to the ethical behavior, legality and integrity of the organization are updated based on the new needs that arise in social and civil relations. These updates are formally shared with the entire team once a year.

Mechanisms for advice and ethical concerns

Those ethical behavior agreements are posted on the main entrances to the industrial facility, this way any supplier, visitor or stakeholder can be up to date with this information.

Multiple mechanisms exist to deal with actions that prove unethical, illegal, or threaten the integrity of the organization and its stakeholders.

The first mechanism is insistently contemplated throughout the agreement "Standards of behavior and ethics among stakeholders or interest groups", which details the actions of the company in the event of any deviation from normal conduct.

In the event that an employee wants to privately share their concerns related to unethical or illegal conduct within the company, The Exotic Blends -SAMAI- has developed an initiative called “mailbox for claims, improvements, complaints and novelties” which is routed in two ways:

The mailboxes' physical location outside the industrial plant is strengthened by the incorporation of a virtual mailbox, in a way that allows greater freedom and anonymity for people to report both negative aspects and opportunities for improvement.

A very clear set of procedures have been created for processing this information where there are no doubts about confidentiality and the benefits of using said tool.

Finally, the company has permanent legal advice for both company matters and its employees and collaborators.

Photo: Company photo archive. TEB industrial facility, Santo Domingo / Ecuador.

Governance structure

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Based on The Exotic Blends -SAMAI’s- principles and corporative values, the governance structure of the company has two sides 1. Internal governance structures, and 2. External governance structures.

On internal governance structures

a. General meeting of Shareholders,

b. Board of directors,

c. Presidency and General management. Under those, the company is divided into the following areas: finance, sales/marketing, human resources, operations and quality control. These areas are managed in the following ways:

i. Production, supply systems and security staff. 14 people, they meet on a weekly basis.

ii. Treasury and cash flow(finances) staff. 8 people, they meet on a weekly basis.

iii. Human resources and development (social, economic) staff. 5 people, they meet monthly.

iv. Security brigades (social), each made up of 4 people: Fire prevention brigade, evacuation brigade, first aid brigade and communication brigade.

d. Legal, branding, contracts and disputes operation team.

e. The Company has leaders/teams for each different area, these are: i. Leader/team for financial and compliance operations (economic). ii. leader/team for operation of the SMETA certification (Social).

iii. SGIA leader/team for management of the ISO 22000 V2018 certification (quality), iv. Team for management of Non-GMO and Gluten Free certification (quality)

In addition to the external governance structure, there are external auditors in:

a. Finance & accounting, Under IFRS standards.

b. Quality, under ISO 22000v2018

c. Ethical trade, under SMETA

d. Legal, under the laws of Ecuador and countries where we operate.

Strategic Management Committee

The strategic management committee is made of up to 10 people, they meet on a monthly basis and their main tool for measurement and decision making is a “Balance Score Card” system. This system allows them, based on the resulting strategic objectives of the annual plan, to quantify,

monitor and evaluate the company’s management indicators in all areas (social, economic, and environmental). This is the company's planning and alignment body par excellence.

environmental aspects

Sustainable Energy Committee

This committee, made up of 5 people, meets bimonthly and its objectives are the sustainable and optimal consumption of energy within the company. In this way it can achieve the sustainability goals aligned with the SDGs 12 and 13 on sustainable production and combating climate change and its effects.

social aspects

Joint Committee on Industrial Safety and Occupational Health

Employees and employers meet in the development and review of health and safety policies and procedures for the various workplaces in the company. This governance structure meets once a month and consists of 12 members, including representatives of both the employee and the employer. Their objective being to improve health and safety at work.

economic and strategic aspects

Strategic Management Committee

This committee consists of 10 people, they meet once a month and their main tool for making decisions is the “Balance Score Card”, an instrument that allows them, based on planning, to monitor the company’s management indicators in all areas (social, economic and environmental). It is the committee par excellence for verifying and monitoring the company’s strategic objectives.

Photo: Company photo archive. Santo Domingo - Ecuador.

Practices for elaborating reports

Definition of the contents of the reports and coverage of the topic

For the current sustainability report, the company is part of the Competitive Business program driven by the Business Council for the Sustainable Development of Ecuador - CEMDES, it is through this program that the report content has been defined.

The principles for defining the content of this current sustainability repor t are: i. Inclusion of stakeholders, ii. Sustainability Context, iii. Materiality and Completeness.

List of material issues

201 ECONOMIC PERFORMANCE

302

401

Reporting period

102-46 102-47 102-50

The reporting period for the current report is from the 1st of January 2019, til the 31st of December 2021.

Photo: Company photo archive.

Photo: Company photo archive. Industrial facility and reforestation initial point, taken from drone at 120m altitude.

Economic performance

Explanation of the material topics and their coverage

The financial indicators of the 35 million units sold per year and the work, for almost two decades, have made us one of the main Ecuadorian operations with the greatest international presence with its own brand in the snacks sector using raw material from the tropical forest of the Andean “Choco” and the Amazon. Financial data is a reflection of planned management based on strong principles, reflected in:

Compliance with national laws, placing ourselves in the ranking of the 40 best exporting companies in Ecuador, that have permanent compliance with workers, regulatory bodies, municipalities, environmental issues, customs and tax obligations.

Compliance with the processing and proper handling of raw materials, reflected in a system of quality management, safety and industrial safety as certified by ISO 22.000 version 2018.

Compliance with international standards, being one of the few Ecuadorian companies with Ethical certification from SMETA - SEDEX social audit on ethical commerce. This audit allows for the company to evaluate its providers, monitor workers’ health and safety, and enforces zero tolerance for human rights abuses, such as child labor and forced labor. These standards align the company with the principles and objectives of the U.N. Global Compact and the Sustainable Development Goals.

The Exotic Blends -SAMAI- complies with many standards and certifications of quality (Kosher, Gluten Free, 100% Natural, Zero Trans Fat), and the health regulations for each country (labeling and nutritional traffic light) to where the processed products are exported.

Photo: Company photo archive. “Valle Feliz”. "SAMAI" Cassava, Biocorredor “El Armadillo”. Santo Domingo - Ecuador.

The Exotic Blends -SAMAI- is aligned with the 10 principles and 17 objectives of the U.N. Global Compact, of which we have been a member since May of 2021.

Compliance with environmental regulations; in February 2021, the company was awarded with an environmental mention in the agro-industrial category by the Prefecture of Santo Domingo de los Tsachilas.

The presence of The Exotic Blends -SAMAI- allows for more than 600 hectares of plantain, banana, cassava, sweet potato and taro to be a permanent and stable commercial route, providing economic opportunities to all the direct and indirect representatives that are related to our value chain.

Photo: Company photo archive. Industrial facility. Santo Domingo - Ecuador.

With all of the above, as it is an agro-export sector highly sensitive to climate risks, logistics costs, raw material costs, trade policies, etc., it means that our operation must be very thorough in the financial and economic aspects.

Where does the impact take place

As an agro export company we have three types of impacts:

The presence of The Exotic Blends -SAMAI- allows producers of over 600 hectares of plantain, cassava, sweet potato and taro to have a permanent and stable commercial route.

The presence of the company allows for the direct generation of 104 permanent jobs which comply with the highest ethics and working standards such as SMETA, Global Compact and Ecuadorian labor laws.

As an agro exports company, we generate foreign currency cash flow into the country and are one of few companies that add value to the raw material from the tropical forest of the Andean “Choco” and the Amazon.

The Exotic Blends -SAMAI- is a company which is committed to the environment. Our presence allows for the conservation, reforestation and protection of strongly pressured ecosystems, such as the foothills of Andean “Choco”, and the Ecuadorian Amazon Rainforest, through small suppliers in vulnerable conditions on the border between Ecuador and Colombia.

Generally, the limitations related to economic aspects are based on its commercial activities, however, The Exotic Blends -SAMAI-, in addition to the aforementioned, actively participates in expanding its impacts in aspects of awareness, environmental education and in the reduction of its greenhouse gas emissions.

Implication of the organization in its impacts.

Photo: Company photo archive. “Siembratón 2019”. El Armadillo Biocorridor. Santo Domingo - Ecuador.

Photo: Company photo archive.

Management approach and its components

(103-2)

The financial management of The Exotic Blends -SAMAI-, starts with an annual budget approved by the board of directors. This budget corresponds to the company's annual operation in compliance with the strategic objectives planned for the year that arise from the annual strategic planning.

All management is anchored to a detailed sales program using many different tools. Next, the entire operation is planned (personnel, hours, resources, schedules, infrastructure, providers, raw material etc.) based on the required capacity to meet the estimated demand of the budget and the required installed capacity.

Once the budget and strategic objectives have been approved, the leader of each sector is responsible for their execution which is constantly measured by a system of indicators presented to the company via its “Balance Score Card” tool.

The purpose of the economic management approach of The Exotic Blends -SAMAI- is “the creation of value over time” in all its scopes and for all stakeholders, seeking to discover and mitigate risks in a conscious and proactive manner.

POLICIES

To increase the value of The Exotic Blends -SAMAIin the medium and long term, and to be recognised as an attractive company for its actions and achievements in social, environmental, economic and good governance aspects.

COMMITMENTS

To be a company 100% compliant with the legislation of each country where we act and operate.

GOALS AND OBJECTIVES

100% compliance with employees, 0% fines from the Social Security System “IESS” and the Ministry for Labor Affairs.

100% compliance with the paying of fiscal taxes, 0% fines from the Internal Revenue System.

100% compliance with the environmental legislation that regulates our operations, 0% fines from the Ministry of Environment and Water.

RESPONSIBILITIES

The primary tool for the company’s management is its Strategic Annual Plan. This instrument is the responsibility of the management/presidency, from which the strategic objectives come. Those which are inserted into the annual budget, after being approved by the company board of directors, are assigned to and executed by the different area leaders. Finally, the actions and initiatives are evaluated through a system of “Balance Score Card” indicators and “IAD’s” or alternative performance indicators.

RESOURCES

The resources provided for the fulfillment of the commitments, established in our Strategic Plan, are reflected in the annual budget within the different areas of the company.

FORMAL MECHANISMS FOR COMPLAINTS AND/OR CLAIMS

Mechanisms for claims on quality:

The company has implemented an IOS 22.000 quality management system, which defines all the procedures and regulations to be carried out in the case of complaints, claims, product recovery, from any representative related to the safety of the product, from the raw material supplier to the consumer. The foregoing is accompanied by the complete and permanent traceability of the raw material to the finished product and the insurance corresponding to events and contingencies.

Mechanisms for worker complaints/claims: Every employee at The Exotic Blends -SAMAI- has a right to work in a respectable, upright, equitable, and harmonious work environment. In order to ensure this, the company has implemented multiple common agreements and standards of behavior and ethics. In the case of undesirable incidents, the worker can make their voice heard anonymously through the external complaint booths and even have legal advice if needed.

SPECIFIC ACTIONS, SUCH AS PROCESSES, PROJECTS, PROGRAMS, AND INITIATIVES.

The main management initiative of the company is its Annual Strategic Plan, all initiatives are chosen and financed from this instrument, so that risks are consciously and proactively mitigated and our positive impacts in social, environmental, good government and economic areas are spread.

Evaluation of the management approach 103-3

The Exotic Blends -SAMAI- has three main mechanisms to evaluate the effectiveness of the management approach, these are:

Leaders/teams for the management of finance, operations, quality systems (IOS 220 V2018, Non GMO and Gluten Free certification), SMETA ethical certification, operation of legal issues, operations in human resources/social aspects and security brigades/occupational health.

Management committees: The objective of the committees is to evaluate compliance with the goals and assumptions of the scenarios established in the annual planning, so that in this way corrective actions can be established regarding the social, environmental and economic aspects. Said committees include the following

1. Committee for industrial security and occupational health – monthly basis.

2. Committee for strategic management. Balance Score Card – monthly basis.

3. Committee for sustainable energy – bimonthly basis.

Shareholders general meeting: It is the highest level of evaluation for the company’s management performance.

Photo: Company photo archive. Company area leader´s meeting.

The main results for the management approach for the 2019-2021 period are:

FINANCIAL INDICATORS:

The company finished the year 2019 with $7.18 million dollars of revenue; during the pandemic, the market’s contraction represented 25% for the year 2020, recovering itself at the end of 2021 with $6.5 million dollars in sales. Nevertheless, despite those facts, during 2020-2021 The Exotic Blends -SAMAI- made important investments expanding and improving the plant’s capacity, security, and health. Due to COVID 19, the indicators show that we have improved our efficiency, during 2021, by 16% in comparison to 2019, without reducing the workforce.

The Exotic Blends -SAMAI- is a special contributor and by policy must have 100% compliance with their permanent obligations, which makes us a trustworthy company for consumers, the state and groups of interest.

INDICATORS REGARDING LABOR

The Exotic Blends -SAMAI- has had 100% compliance with its obligations to its employees and collaborators. During 2021 it has been subject to two inspections by the Ministry of Labor and one by Social Security, resulting in 100% compliance and 0% fines.

INDICATORS REGARDING THE ENVIRONMENT:

The company has never been fined for not complying with environmental norms, reporting 100% compliance and 0% fines and earning an award in the agroindustry category for their environmental management during 2021 from the Provincial government of “Santo Domingo de los Tsachilas”.

Photo: Company photo archive. Sales point visit in the Caribbean.

Energy Management Approach. Explanation of the material topic and its boundaries

103-1

At The Exotic Blends -SAMAI- we started by carrying out an analysis and characterization of the sources and uses of the different energies under a database from 2019 to 2021 and finally we arrived at a strategic clean energy plan for 2023.

We look to find reliable knowledge about our facilities' energy consumption; its toll on the environment, the economy and all the factors that affect energy consumption, so we can identify and evaluate opportunities for saving energy, and improve the efficiency and energy generated from clean and renewable sources.

The energy audit was carried out in accordance with the established requirements set by the UNE 216501:2009 norm, which applies to all energy audits, and all organizations that use energy in any form, independent of its size and use.

The company’s energy structure is based on 82% use of fossil fuels (Diesel), 10.5% use of electricity from the national grid and, as of 2022, 7.5% use of photovoltaic energy.

Under this approach, the company is aligned with the environmental principles set by the Global Compact, which are:

Companies must maintain a preventive approach oriented to the challenge of environmental protection.

Adopt initiatives which promote greater environmental responsibility, and

Favor the development and diffusion of technologies that respect the environment.

Photo: Company photo archive. Photovoltaic panels. TEB Facility. Santo Domingo – Ecuador.

Where the impact is produced

The efficient energy coverage has three approaches:

1 2Generate reductions in energy consumption from non-renewable sources at the industrial facility level.

Implement technologies for self-generation of energy that allows for energy consumption, from sources such as the national grid, to be reduced.

Generate knowledge and good environmental practices that can be replicated at a regional level with other industries, through our initiative “Casa Bosque Agua-CBA”.

In 2020, The Exotic Blends -SAMAI- decided to emerge from the pandemic stronger, setting more demanding goals on energy issues. That is why the impacts are directly linked to the strategic objectives resulting from the annual planning for 2021 and 2022.

We have observed that the industrial facility’s energy consumption is not evenly distributed , especially in relation to the consumption of fossil fuels, where diesel is the main fuel used.

Management approach and its components (103-2)

The Exotic Blends -SAMAI- manages the area of energy efficiency and emissions through the committee led by general management. Said committee meets bimonthly and uses the “Energy Balance Score Card” as a tool for measurement and compliance.

Within this planification a group of strategic objectives has been developed and embodied in projects of interest.

Implications of the organization in its impacts.

Photo: Company photo archive. Fronius Web dashboard of the photovoltaic system.

These projects are divided into:

Quality of energy transmission (Measurement): Monitoring pressure gauges and instruments, insulation, maintenance, filters and intelligent consumption reductions. The objective is to measure all the emitting and transmitting sources of energy, in order to reduce gallons of diesel used per Kg of chip produced.

Circular economy project (still in planning phase): a 70.000 kg-year of burnt oil, currently given to tanneries for their use. The objective of the company is to recover this waste so that it can be re-incorporated into the industrial operation as a source of energy in the heating processes as Biodiesel. A considerable volume of diesel can be replaced and the company must adapt to new maintenance logistics, training and investigation.

Electricity: monitoring systems, low conductivity systems, motor replacements, air conditioning, illumination, taking advantage of natural cooling and light.

Awareness and generation of a saving culture: allows us to present the energy plan and concept of sustainability and carbon negative to personnel and stakeholders

The purpose of the energy management approach of The Exotic Blends -SAMAI- is “the creation of value over time” in all its scopes and for all its stakeholders, minimizing the relative consumption of different energy sources for each Kg of chips produced in the operation, by consciously and proactively discovering and mitigating risks.

POLICIES

To increase the value of The Exotic Blends -SAMAI- in the medium and long term, and to be recognised as an attractive company for its actions and achievements in social, environmental, economic and good governance aspects. Therefore continuing to be an ethical and valued operation.

COMMITMENTS

Our commitment answers the question: What would happen if tomorrow The Exotic Blends -SAMAI- disappears? We are committed to consciously and proactively diagnosing and mitigating all energy consumption, so that we have a sustainable company with sustainble products in the future.

Photo: Company photo archive.

OBJECTIVES AND GOALS

To reduce our global energy consumption by 23% per kilogram of chips produced by 2023.

RESPONSIBILITIES

The main tool for environmental management is the company’s sustainable energy plan, which is under the responsibility of the Committee of Sustainable Energy. The committee has six representatives from the following areas.

General Management: Directs the strategic objectives that have been planned.

Maintenance Leader: has a big part in projects for improvement and optimization (areas, teams, elements), take place directly, or through the hiring of third parties.

Production Leaders: Coordinates the execution of different environmental projects so that they don’t clash with commercial and industrial facilities infrastructure projects.

Human Talent Leader: training and communication of all the elements mentioned for the Stakeholders.

RESOURCES

Quality Area Leader: verifies and proposes new control points required for validating the activities developed.

Sales Leader: communication of the environmental objectives to the clients and consumers.

The planned resources for the fulfillment of our environmental commitments are embodied in the annual budget which is based on the strategic plan, and distributed to each area.

FORMAL MECHANISMS FOR CLAIMS AND/OR COMPLAINTS

The control/rectification mechanisms are based on the results defined on the “Energy Balance Score Card”. This allows for three types of actions:

Corrective actions are taken if results are outside of those planned or admissible.

Preventative actions through other minor projects that do not directly generate management indicators, they perfect themselves as they interact with the target audience and in periodic revisions within the energy management committee, these

projects are referred to as alternative performance indicators, IADs.

Training and awareness actions for our workers and stakeholders to become aware of sustainability concepts and initiatives driven by the company.

SPECIFIC ACTIONS, SUCH AS PROCESSES, PROJECTS, PROGRAMS AND INITIATIVES

Implement a preventive plan for machinery maintenance and energy savings.

Generate awareness channels for all the company’s personnel.

Implement more efficient technologies and controls that allow the company to reduce energy consumption.

By the end of 2023 we will replace 15% of the facility’s energy consumption with the implementation of a photovoltaic system.

Photo: Company photo archive. “Casa Bosque de Agua”. Photo: Company photo archive. In-house training to our staff.

Evaluation of the management approach

The company's main environmental management instrument is its Clean Energy Plan, which is the responsibility of the Sustainable Energy Committee and TEB Management. At each bi-monthly meeting of the committee, the performance of each of the projects established in the plan is reviewed. Each energy plan has its own "Balance Score Card" to monitor the company’s energy consumption on a monthly basis. In this way the results of energy projects are evaluated and corrective actions taken.

For those projects with no specific indicators, the progress and results are evaluated within the sustainable energy committee.

The Exotic Blends -SAMAI- carried out an energy efficiency analysis during 2021, from this analysis, the following results were obtained comparing the 2019 period and the 2021 period.

For the year 2019, the total energy consumption for the plant was equivalent to 3,936,887 kWh, of which 90.21% corresponded to nonrenewable sources, specifically diesel, and the 9.78% corresponded to renewable sources coming from the national electrical grid.

With a production of 1.487.709 kilograms in snacks, the energy consumption index was 2.39 kWh and 0.26 kWh per kilo of processed snacks coming from nonrenewable and renewable sources respectively.

For the year 2021, the total energy consumption of the industrial facility was 2.850.315 kWh, of which 87.32% corresponded to nonrenewable sources, specifically diesel, and the 12.67 % of renewable sources coming from the national electrical grid.

During the pandemic, the company implemented policies for the optimization of energy consumption, reducing 27.6% of its global consumption for 2021 in comparison to 2019, said reduction was of 30% for diesel and 6% for electricity.

Any modification related to the management approach does not apply.

Photo: Company photo archive.

Energy consumption within the

The Exotic Blends -SAMAI- consumes 81.250 gallons of diesel per year as a nonrenewable energy source.

The Exotic Blends -SAMAI- does not have any renewable energy sources.

The energy audit has been carried out in accordance with the requirements set by UNE standards 216501:2009, which is applied to all the energy audits that take place within any organization which uses energy in any form, independent of its size and use.

Collection of preliminary information: Inventory of loads and energy bills of the last 3 years (2019 - 2021).

Energetic evaluation: The energy supply and use is analyzed. The estimates are contrasted and validated with actual consumption based on bills and measured consumption.

Analysis and suggestions for improvement: Improvement proposals are analyzed that allow reducing energy consumption, its economic and environmental costs, within these the installation of renewable energy projects.

Photo: Company photo archive. Energy Balance Score Card.

Emissions

Explanation of the material topic and its boundaries

Exotic Blends

and aware that all actions have an effect on

footprint, using an external energy audit (done in

standard 216501:2009),

global J3M company.

Photo: Company photo archive. Tropical forest of the Andean “Choco” .

Impact

The accounting of the company’s carbon footprint includes emissions comprehended in scopes 1,2, and 3.

1Direct Emissions: Own sources and/or those controlled by the organization.

Within the production process, equipment such as double jacket burners and frying tanks consume fossil fuels (diesel) generating emissions into the atmosphere. The company also own vehicles that use fossil fuels (gasoline and diesel).

Indirect Emissions: Emissions resulting from generation of purchased electricity, steam and/or heat.

3

Other Indirect Emissions: Emissions resulting from the company's activities, but not from its own sources or not under the company's control.

Finally, for the analysis, the category of transportation of materials and supplies (Upstream T&D) is considered. The transportation of water in tanks for operations and cleaning.

Management Approach and its Components

The Exotic Blends -SAMAI- manages energy efficiency and emissions through the committee for sustainable energy, which is led by general management.

Management Approach and its Components

(103-2)

The Exotic Blends -SAMAI- manages energy efficiency and emissions through the committee for sustainable energy, which is led by general management.

This committee has 6 members at management level, who meet bimonthly and have a 2021/2023 clean energy plan and a tool for monitoring and improving based on its own balance score card.

The purpose of the energy management approach of The Exotic Blends -SAMAI- is “The creation of value over time” in all its scopes and for all its stakeholders, minimizing the net emissions of CO2 equivalent per kg of produced chip in our operation, through the discovery and mitigation of risks in a conscious and proactive manner.

POLICIES COMMITMENTS

Increase the value of The Exotic Blends -SAMAI- in the medium and long term, and to be recognised as an attractive company for its actions and accomplishments in social, environmental, economic, and good governance aspects. More than an issue of sustainability, we are strongly committed to achieving a Corporate Culture of Integrity, seeking to find a positive Net Contribution for society and all our stakeholders.

Consolidate the operations of The Exotic Blends -SAMAI- as a company whose value chain is net carbon negative from the plant to finished product.

OBJECTIVES AND GOALS

The company’s main environmental management tool is its sustainable energy plan, which is under the responsibility of the sustainable energy committee and management. The committee has 6 goals

Reduce CO2 equivalent emissions per ton of chips by 23% by 2023.

Industrial operations indicator: Reduce the generation index of ton of CO2e/ ton of chips to below 1.11 by 2022.

Consolidate the reforestation processes carried out by the company through the "Casa Bosque del Agua" and "Biocorredor El Armadillo", to contribute directly to CO2 capture sinks in the intervention area of its operations.

CO2 capture: Maintain an index between 130TM and 140TM of CO2 captured per ton of snacks produced, considering the driven reforestation process and the plantations linked with the company’s value chain.

Contribute to the Environmental governance processes driven by the provincial GAD of “Santo Domingo de los Tsachilas”, providing a toolbox for other industrial sectors of the province.

Photo: Company photo archive. Factory premises reforestation, GAD Tree nursery, Tropical forest of the Andean “Choco”.

RESPONSIBILITIES

The main environmental management tool for the company is the clean energy plan, which is under the responsibility of the sustainable energy committee and general management. The latter directs the committee within the company and builds bridges at provincial and national levels, channeling initiatives, knowledge, products, support for governance, reforestation and environmental education through the "Casa Bosque Agua-CBA" Program. " and "El Armadillo Biocorridor".

RESOURCES

The planned resources for the fulfillment of our environmental commitments are embodied in the annual budget which is based on the strategic plan, and distributed to each area.

FORMAL CLAIMS AND/OR COMPLAINT MECHANISMS

There is no formal complaint and/or claim mechanism for emissions other than that proposed by the Sustainable Energy Committee.

SPECIFIC ACTIONS, SUCH AS PROCESSES, PROJECTS, PROGRAMS AND INITIATIVES

The main action the company has regarding environmental issues is called “Casa Bosque del Agua”, said initiative is a strategy through which the company channel their efforts to mitigate their negative effects towards the environment and enhance their positive effects through public private association with regional governments and other companies for the development of:

Reforestation of riparian corridors, in this case the “Biocorredor El Armadillo” which is found in the foothills of the tropical forest of the Andean “Choco”.

Environmental education.

Support for the provincial GAD (decentralized autonomous government) of “Santo Domingo de los Tsachilas” in its environmental governance initiatives.

Support for recycling campaigns.

Development of toolboxes for the industrial sector.

Hidden cameras for monitoring wildlife.

The relationship with the provincial environmental authority is anchored in the “institutional support agreement for the development of environmental education and reforestation activities between the GAD (decentralized autonomous government) of “Santo Domingo de los Tsachilas” and The Exotic Blends Co Blexotic S.A. company.

Evaluation of the management approach

The Exotic Blends -SAMAI- has formed a sustainable energy committee which bases its management on the established goals in the clean energy plan and is measured with the "Balance Score Card" tool. The committee will meet bimonthly and evaluate the progress and evolution of the different projects through the indicators established by the organization.

In this same manner, the company maintains planning meetings with the prefecture of “Santo Domingo de los Tsachilas” to identify plans of action that are reflected in the “institutional support agreement for the development of environmental education and reforestation activities between the

decentralized autonomous government of Santo Domingo de los Tsachilas and The Exotic Blends Co Blexotic S.A. company.” which lasts until the year 2026.

As the reforestation process relates directly to the wildlife, there is a second agreement “Delivery on loan of two trap cameras for the monitoring of wildlife” which is annexed to the previous agreement with the provincial GAD (decentralized autonomous government) of “Santo Domingo de los Tsachilas”.

Photo: Company photo archive. GPS photo of the “Biocorridor El Armadillo”.

In industrial facility operations: for the base year, 2019, the CO2e emissions were of 1.973.53 tonnes, and for the year 2021 said emissions totaled 1.605.06 tonnes, which meant a reduction of 18.7%.

Capturing CO2 emissions actions: During the period between 2019 and 2021, in the framework of the “Biocorredor El Armadillo”, 83 hectares of native species have been reforested at river level, increasing 12.682 units of mass of trees planted, which means an approximate reading of 4.068 tons of CO2 per year.

Agricultural base and value chain: Another relevant aspect to consider is that within the company’s value chain there are suppliers with more than 600 hectares of banana, based on analysis done, this means an estimated 209.632 Tm of CO2 captured.

Considering the CO2 emissions of the company, which increased to 1.608.06 Tm during 2021, and comparing it to the CO2 capture rate from the plantations and reforestation processes, which increased to 212.096 Tm, it can be concluded that the total operation of the company in its value chain captures more CO2 than it emits. (Carbon Negative).

In conclusion, considering the amount of chips produced during 2021 of 1.435.509 kilos, for each ton of snacks produced by the company, approximately 147.8 Tm of CO2 is captured throughout the entire value chain, including the reforestation processes driven by "Casa Bosque del Agua" and "Biocorredor El Armadillo ".

It is important to contextualize that all the effort that is put into the production, industry and reforestation take place in the foothills of the tropical forests of the Andean Ecuadorian “Choco”, which is one of the most biodiverse regions on the planet and at the same time the most exposed to deforestation and the deterioration of its ecosystem.

Modifications to the management approach are not presented.

Photo: Company photo archive. Committee of sustainable energy staff meeting.

Emissions

GEI Direct emissions

Gross value of direct emissions

1.617,65

metric tons of CO2 equivalent

Emissions during the base year

1.983,12

metric tons of CO2 equivalent

Considering a normal production period of The Exotic Blends -SAMAI- (Last year pre covid19), the availability and that future years will allow for a significant comparison, it has been established that the base year is 2019, spanning from the first of January 2019 til the 31 of December 2019.

The Exotic Blends -SAMAI- formally began the process of becoming carbon neutral in 2018, hoping to reach it by 2023. The processes have been implemented along side CORPEI, with funds from the European Union (Project ExportDes), and the support of the prefecture of “Santo Domingo de los Tsachilas” for the creation and development of the “Biocorredor El Armadillo”. The biocorridor itself shows the need to build toolboxes for the public and private sectors, which motivates the company to increase its challenges.

For the quantification of the Emissions produced by The Exotic Blends -SAMAI-, the methodology of employment factors was used, since it most closely adjusts to the reality of the organization. On top of that, a calculation tool was used, developed by GHC protocol, and its latest version is available on their website.

For the quantification of emissions, the global warming predicted in the latest IPCC report (5th) was calculated for 100 years (GWP100) without feedback from carbon climate (No cc fb) in order to reduce the uncertainty of the calculations.

Environmental compliance

Explanation of the material topic and its boundaries

103-1

The importance of environmental compliance is answered by the question: What would the legacy of The Exotic Blends -SAMAI- be if it disappeared now? During the two decades the company has been active, it has never received fines or complaints regarding its processes, and has generated experience and implemented more environmentally friendly technology. This led to acknowledgment from the environmental authority of the Provincial government of “Santo Domingo de los Tsachilas” -year 2021- in the environmental category for the implementation of the “Biocorredor El Armadillo”.

Since 2020, the company has formally decided to increase its efforts for three fundamental issues, beyond compliance with the norms, these are:

Declare itself a carbon neutral company by 2023, aligning itself with the sustainable development objectives, ODS 12 and ODS 13

Incentivize environmental education processes in alliance with the local environmental authority aligning itself with the sustainable development objective ODS 4, goal 4.7.

Fight against the desertification of the Andean “Choco” within its area of influence, aligning itself with the sustainable development objective ODS 15, goals 15.2 and 15.5.

With this framework, the company has subscribed as a member of the Global Compact Chapter: Ecuador, and is in coherence and alignment with the international framework and conventions

Why do we put in so much effort? A company’s value isn’t limited to its financial indicators, there are some non-financial indicators, API’s (Alternative Performance Indicators), related with social and environmental scopes which are becoming more relevant, This means that being good in business isn't enough, rather, discovering and mitigating risks in a conscious and proactive way. In the end, when a consumer opens one of our bags of snacks, they will know that SAMAI has a history of sustainability, that's why SAMAI is more than just a snack.

Impact

1Aspects of normative compliance: The company is compliant with all Ecuadorian environmental standards in all aspects for agro-industrial norms.

Aspects of Improvement related to compliance: with the 2030 agenda and the UN Global Compact in terms of sustainable production, reduction of emissions to the environment and use of more sustainable energy sources.

Aspects of Environment improvement: related to the compliance of the 2030 agenda regarding reforestation and the protection of biodiversity, proper waste management and contribution to environmental education and governance.environmental education and governance.

Organizations implications regarding the impacts

The company’s implications regarding environmental impacts can be summarized in:

Directly contribute to projects regarding reforestation, environmental education, biodiversity, recycling campaigns and planification of territory through the “Biocorridor El Armadillo” (BEA), which is managed by the initiative: “Casa Bosque del Agua” (CBA).

Contribute directly to the reduction of greenhouse gasses and energy efficiency through the implementation of photovoltaic cells and improvements in the maintenance of engines and equipment.

Maintain a good neighbor policy, in compliance with all environmental regulations.

Contribute indirectly, through the use of toolboxes, so that the local environmental authority strengthens its environmental education programs and campaigns. All this joint work of successes and adversities is shared through the QR codes implemented in each of the snack bags, linked to the www. andeancloudforest.com webpage.

Photo: Company photo archive. “Biocorridor El Armadillo” project.

Management approach and its components (103-2)

Once The Exotic Blends -SAMAI- has an approved budget and assigned strategic objectives. Each area leader is responsible for executing their budget and permanently measuring using a system of indicators, so that adjustments and actions can be implemented to allow compliance with current national regulations regarding environmental compliance.

In the case of environmental compliance management, the Management/Presidency leads this approach.

The company, led by the Management, maintains public-private cooperation agreements with the Provincial Government of “Santo Domingo de los Tsáchilas”, through which it supports the reforestation and environmental education processes of the province, especially related to the “Biocorridor El Armadillo” project.

Since 2020, the company has had a space/ infrastructure for knowledge, education and the generation of environmental proposals, called "Casa Bosque Agua", which aims to bring together public, private and community actors.

The purpose of the management approach to The Exotic Blends -SAMAI- is "The Creation of Value over time" in all its areas and for all stakeholders, discovering and mitigating all the environmental risks resulting from our operations in a conscious and proactive manner, complying with the regulations of the countries where we have presence.

POLICIES COMMITMENTS

Increase the value of The Exotic Blends -SAMAIin the medium and long term, to be recognised as an attractive company for its actions and accomplishments in social, environmental, economic, and good governance aspects.

OBJECTIVES AND GOALS

100% compliance with the environmental standard that regulates the operations of The Exotic Blends -SAMAI-, 0% of fines by the competent authority.

Be a company with 100% compliance with laws in all the countries where we act and operate.

RESOURCES

The resources provided for the fulfillment of our commitments are reflected in the annual Strategic Plan, distributed by area.

RESPONSIBILITIES

The main management instrument of the company is its annual Strategic Plan. This instrument is the responsibility of the Management/Presidency, from where the strategic objectives originate. An annual budget, which, once approved by the company's Board of Directors, is assigned, and executed by the different leaders of the company areas and finally the actions are evaluated through a system of indicators "Balance Score Card" and a group of API's or alternative performance indicators.

SPECIFIC ACTIONS, SUCH AS, PROJECTS, PROGRAMS AND INITIATIVES.

For 2020 and 2021, the company expanded the capacity of the oxidation pool and has improved its coating to prevent unwanted leaks into the environment.

For 2020 and 2021, a new reinforced concrete septic tank was built for the containment of black and sewage waters.

For the year 2020 and 2021, a system of grease/ detergent traps was built for the containment of oils, detergents, and chemicals, which are used during the cleaning processes of the machinery.

Evaluation of the management approach

103-3

The approved annual budget is the economically dimensioned tool for all of the company’s operations (personnel, hours, resources, schedules, infrastructure, suppliers, raw material etc..), depending on the required capacity to meet the estimated demand. Additionally, this tool responds to the strategic objectives taken from a thorough analysis of the organizational threats, weaknesses, strengths, and opportunities.

The company works parallel with an ESG strategy, where the G represents the company’s governance. This last aspect is of vital importance since it indicates the ways the current company acts and reports information regarding achievements, victories and defeats.

The ESG strategy proactively measures the sources of risk that appear in the company’s environment. It evaluates, measures, and acts accordingly.

During 2021, The Exotic Blends -SAMAI- was awarded with an environmental recognition in the agroindustry category, by the GAD (decentralized autonomous government) of “Santo Domingo de los Tsachilas”, for the implementation of the “Biocorridor El Armadillo”.

This prize was given by the environmental authority of the province, to the organization that shows or has done activities out of the ordinary and under complete compliance with the requirements set by the environmental norm. At the same time the organization shows true interest in improving the province’s conditions for the conservation and enjoyment provided by the environment.

The company shows 100% compliance with the environmental norm and 0% in fines.

Photo: Company photo archive. Facility area before reforestation. 2018.

Photo: Company photo archive. Environmental Award. 2021.

Photo: Company photo archive. Reforested facility area and Oxidation pool. 2020.

Photo: Company photo archive. Reforested facility area. 2021.

Environmental compliance

Non-compliance with the law and environmental standards

Total monetary value of significant fines

USD

Total non-monetary sanctions 0,0 USD

The Exotic Blends -SAMAI- has never had to submit to environmental dispute resolution mechanisms, being loyal to their 100% compliance of the laws of each country where they act and operate. The Exotic Blends -SAMAI- has been adhering to environmental norms for two decades; a company deserving of awards for environmental management given by the local environmental authority; all the processes are compliant to the parameters required by law.

This permanent work is continually improving, through successes and errors, and has allowed us to take additional steps in favor of the environment, which is why since 2019 the company has started two large action groups:

Internal actions: directed towards the reduction of CO2 emissions, water management, energy efficiency.

External actions: Related to environmental education, reforestation, wildlife camera traps, recycling and conservation under the initiatives set by “Casa Bosque Agua” and the “Biocorredor El Armadillo”.

Explanation of the material topic and its boundaries

103-1

The Exotic Blends -SAMAI- respects human rights whilst promoting good practices, ethics, and diversity within the organization. We are conscious that to take the magic of the Andean “Choco” it is not enough just to use sustainable materials/supplies; we require quality collaborators and workers throughout the entire value chain, who are motivated and committed.

As evidence of the importance of workers and collaborators to the company, on the back of each snack´s bag, there is a serious and coherent agreement which translates to:

Being one of a few companies in Ecuador that has SMETA and UK SEDEX certifications, in compliance with its four pillars (i. Health and Safety, ii. Labor Standards, iii. Environment, and iv. Commercial Ethics).

Being a member of the Global Compact, in communion with the 10 principles of human rights work, environment and the fight against corruption, and many of the 17 objectives for a sustainable development.

To learn more about what SMETA and the Global Compact mean, you can access the following links: https://www.sedex.com, https://pactoglobal-ecuador.org/

The productive operations of The Exotic Blends -SAMAI - located within the province of “Santo Domingo de los Tsachilas” - are an important source of non-agricultural work, which means a specialized workforce. 100% of the company’s workers are sheltered under a full time labor contract which is 100% compliant with Ecuador’s labor laws.

In 2021, due to the company requiring around 600 hectares of raw material including banana, cassava, sweet potato and taro, through commercial relations, it favors improvement of income and agricultural employment in the production and peeling processes.

Finally, having a SMETA certification guarantees and gives evidence of the robustness of all commercial relationships with customers and distributors. This strengthens our value chain and aligns us with the principles and objectives of the Global Compact.

Involvement of the organization in the impacts

The company has created permanent work for 104 men and women in compliance with national and international standards and legislations, making us one of the 40 best Ecuadorian export companies who comply with tax and labor obligations.

The topic coverage is limited to the organization's zone of influence.

Management approach and its components (103-2)

The Exotic Blends -SAMAI- manages the employability of its employees through five mechanisms:

The human resources area, which is responsible for the hiring, training, evaluation, and control of personnel.

The joint committee of health and industrial safety, which is composed of: one representative for the employer, and three representatives for the employee with their respective substitutes.

The annual audits for compliance of the SMETA certification.

The subscription of 100% of the company's collaborators to an ethical commitment and information management, which establishes the values and principles of the company.

The company has an updated internal regulation, in accordance with 100% compliance with Ecuadorian labor laws.

The purpose of the management approach of employment of The Exotic Blends Co. -TEB- is “The creation of value over time” fostering good ethical practices of respect and equal opportunities for men and women.

POLICIES COMMITMENTS

Increase the value of The Exotic Blends -SAMAIin the medium and long term, to be recognised as an attractive company for its actions and accomplishments in social, environmental, economic, and good governance aspects.

OBJECTIVES AND GOALS

100% compliance with the obligations towards its workers, 0% fines from the authorities for labor relations and the Social Security Institute.

2

Be a company with 100% compliance with laws in all the country's where we act and operate.

4

RESPONSIBILITIES

RESOURCES

FORMAL CLAIMS AND/OR COMPLAINT MECHANISMS

All employees at The Exotic Blends -SAMAIhave the right to work in a respectful, integral, equative, harmonic work environment. To accomplish this the company has implemented various behavioral and ethical norms, for example In the case of non-desirable incidents at work, a worker can voice their complaints anonymously through the mailboxes(virtual and physical).

The main tool for management is the annual strategic plan, a tool which is under management's responsibility.

The planned resources for the fulfillment of our commitments are embodied in the strategic plan, which is distributed by area.

The Exotic Blends -SAMAI- noticed that workers were not using the mailboxes within the facility. In interviews carried out with staff it was noted that the workers didn’t feel anonymity, so the mailboxes have been moved outside and an additional “virtual mailbox” has been implemented. Now, if a person wants to communicate with the company, a level of confidentiality and proper treatment is given to the information.

SPECIFIC ACTIONS, SUCH AS PROCESSES, PROJECTS, PROGRAMS AND INITIATIVES

Evaluation of the management approach 103-3

The Exotic Blends -SAMAI- has three main mechanisms for evaluating the effectiveness of the management approach.

LEVEL 1

The Leaders/Teams for financial and operational management, quality systems (IOS 220 v2018, non-GMO and Gluten Free certification), SMETA ethics certification, legal issues operations, human resources/social aspects operations, and occupational health and safety brigades.

LEVEL 2

Management committee whose objective is to evaluate the compliance with the goals and assumptions of the scenarios established in the planning so that corrective actions are established in terms of social issues. The company has an Industrial safety and Occupational Health committee.

LEVEL 3

Inspections from Labor and Social Security Authorities: This level does not correspond to the company, yet it allows identification of the system’s weaknesses.

The Exotic Blends -SAMAI- Upto 2021 has had 100% compliance with their labor obligations. Two complete inspections from the Ministry of Labor Relations and Social Security Institute, were carried out as part of the government's initiative to understand how the labor administration of companies was affected by covid-19. In all inspections, reports state 100% compliance and 0% deviations.

There have been no changes to the management approach.

Local Communities

Explanation of Material Topics and its boundaries

103-1

The Exotic Blends -SAMAI- is a company that is committed to 100% compliance, for all countries, in all its operations in the economic, environmental, and social fields. However, it is aware that, in addition to complying with and generating work directly or indirectly in its value chain, there is a reality of inequity that is not minor and needs to be addressed.

It is because of this that, from the beginning, the company has conceived the importance of generating value to others that aren’t necessarily related with our operations or area of influence, this is defined by three areas of social intervention:

Contribute so that children in risky situations may be attended to properly.

Contribute to the local environmental authority, so that they may have technical tools/toolboxes and generation of fiscal and digital material, which allow us to consolidate the environmental education, reforestation, biodiversity, recycling and governance processes.

Contribute as an anchor company to fill the gaps between the market and small banana producing companies.

Photo: Company photo archive. “The Exotic Blends - Valle Feliz”

Impact

The impact coverage of the actions of The Exotic Blends -SAMAI- the social aspects are regional and local.

1Regional Impacts: Through the construction and donation of equipment and technical tool boxes, so that, through “Santo Domingo de los Tsachilas'' prefecture, children and adults receive environmental education programs (Specific framework agreement for the inter institutional cooperation for environmental awareness MINEDUC zonal direction 4 D23D01). Active participation in reforestation, recycling and the monitoring of biodiversity processes, done through the following conventions: “Institutional support for the development of environmental education and reforestation activities between the provincial decentralized autonomous government of “Santo Domingo de los Tsachilas'' and The Exotic Blends -SAMAI-.

Local impacts: Through a program implemented by the European committee for training and agriculture -CEFA-, in vulnerable populations on the north border, so that gaps in the market can be closed by The Exotic Blends -SAMAI-.

3

Local Impacts: Through the “Hogar Valle Feliz '', so that through donations, children in risky conditions may receive psychological counseling, tutors, housing, food and legal attention.

In all cases, The Exotic Blends - SAMAI - channels its support through organizations that have the potential and the expertise to generate positive social effects that can be permanently quantified.

Photo: Company photo archive. The Exotic Blends – GAD. Wildlife Trap Cameras Initiative.

Involvement of the organization in the impacts

In the case of the CEFA program, the impacts are produced through business relations, as the company acts as an anchor, and for the other aspects, the prefecture and “Hogar Valle Feliz”, the organization contributes technical assistance and resources.

There are no relative limitations on the coverage of the topic.

Management approach and its components

(103-2)

The Exotic Blends -SAMAI- manages aspects related to communities at the level of general management and the company's presidency. It is true that a committee does not exist to cover these scopes, the company filters proposals based on three principles:

The operator must have experience to maximize the impacts.

The intervention must be protected in an agreement with those interested.

The results must reach the highest number of people possible, hence, the importance of the toolbox.

The purpose of the social management approach of The Exotic Blends -SAMAI- is “The creation of value over time” in all its scopes and for all its stakeholders, developing positive action in the social, environmental, and economic aspects inside and outside our company value chain.

Photo: Company photo archive. The Exotic Blends – CEFA. Agricultural suppliers’ development program.

1POLICIES

Increase the value of The Exotic Blends -SAMAIin the medium and long term, te be recognised as an attractive company for its actions and accomplishments in social, environmental, economic, and good governance aspects

COMMITMENTS

Being a socially responsible company, we contribute to the growth of society through concrete and accountable actions.

OBJECTIVES AND GOALS RESPONSIBILITIES

The main objective of The Exotic Blends -SAMAIin the social aspects is to reduce inequality by supporting the management of relevant representatives in their territory.

RESOURCES

The main tool for management is the annual strategic plan, a tool which is under management’s responsibility.

The resources are the result of the agreement of The Exotic Blends -SAMAI- with those interested, which are planned out annually.

FORMAL CLAIM AND/OR COMPLAINT MECHANISMS

By being the social sphere, aspects are led from management and presidency, the formal mechanisms for claims and/or complaints are managed directly from said areas.

Photo: Company photo archive. “Biocorridor El Armadillo” Initiative.

7SPECIFIC ACTIONS, SUCH AS PROCESSES, PROJECTS, PROGRAMS AND INITIATIVES

Contribute to the “Hogar Valle Feliz” so that children at risk may receive legal advice, housing, food, tutoring, psychological advice and any special requirements for a particular child or its infrastructure.

Contribute to the local environmental authority, the prefecture of “Santo Domingo de los Tsachilas”, so that they may have access to technical tools/toolboxes that allow the consolidation of environmental education, reforestation, biodiversity, recycling and governance at a provincial level, and especially the area denominated the “Biocorridor El Armadillo”.

Evaluation of the management approach

103-3

Comply with the role of an anchor company, so that, through the European Committee for training and agriculture, gaps in the coffee and cacao producers’ market may be closed in the production of banana gathering, peeling and selling in the area of the border between Ecuador and Colombia, in the province Sucumbios.

For social aspects, The Exotic Blends -SAMAI- establishes agreements/conventions for the implementation of the actions and in all cases, relations are direct with the implementing organizations. Periodic review spaces are established for the execution of what was planned versus what was done.

CEFA agreement: 300 producers (at least 40% female) are linked to radical coffee and cacao producing associations in the border zone between Ecuador and Colombia, in the Sucumbios province, closing gaps in the commercialization of banana under the focus of the anchor company The Exotic Blends.

“Hogar Valle Feliz” agreement: relationship for more than 15 years.

“Santo Domingo de los Tsáchilas” Provincial Prefecture Agreement: 140,000 students trained with edu-informative tools developed by The Exotic Blends -SAMAI-, in the framework of “Biocorridor El Armadillo”, of which CORPEI and the prefecture are members of, financed with resources from the European Union. There are no modifications to the management approach.

www.andeancloudforest.com

Local communities

Operations with participation from the local community

413-1

%

Percentage 100%

Each section of The Exotic Blends -SAMAIhas programs which in one way or another consider the participation of the local communities, and evaluate the impacts and/ or development programs. The following programs are mentioned below:

Purchase, reception of raw material and peeling: Collaborates with provider development program which is implemented by the European Committee for training and agriculture -CEFA-, with funding from the AECID.

Packing and exporting operations: Has 2 related programs:

1. “Casa Bosque Agua” (CBA) program, which contemplates environmental education, reforestation, wildlife and good environmental governance.

2. Donation program directed to “Hogar Valle Feliz” for children in at risk situations.

All the company’s actions have a Joint Committee for industrial security and occupational health. This committee gathers the employees and the employers in the development and revision of policies and procedures for health and safety in the different work areas.

This material references the GRI 102: general content 2016, GRI 103: management focus 2016, GRI 201: Economic performance 2016, GRI 302: Energy 2016, GRI 305: Emissions 2016, GRI 307: Environmental compliance 2016, GRI 401: Employment 2016, GRI 413: Local communities 2016. For a more detailed explanation of the relevant content, view the GRI content index.

102-55 GRI Content Index

GRI STANDARDS DISCLOSURE

GRI 102: GENERAL CONTENT 2016

ORGANIZATION PROFILE

102-1 Organization name

102-2 Activities, brands, products, and services

102-3 Headquarters location

102-4 Operations location

102-5 ownership and legal form

102-6 markets served

102-7 Organization size

102-8 information about employees and other workers

102-10 Changes to the organization and its supply chain

STRATEGY

102-14 declaration of high executives responsible for taking decisions

ETHICS AND INTEGRITY

102-17 Mecanismos de asesoramiento y preocupaciones éticas

PDF page number Omitted part Reasoning behind omission

Explanation behind omission

GOVERNANCE

102-18 Governance structure

PRACTICES FOR THE ELABORATION OF REPORTS

102-45 entities included in the consolidated financial statements

102-46 Definition of report content and topic covers

102-47 List of material topics

102-48 restatement of information

102-49 changes to the elaboration of reports

102-50 reporting period for the report

102-50 date of the last report

102-52 report elaboration cycle

102-53 contact point for questions regarding the report

102-55 GRI content index

THEMATIC STANDARDS

SERIES 200 (ECONOMIC TOPICS)

ECONOMIC PERFORMANCE

GRI 103: Management approach

103-1 explanation of material topics and their boundaries

103-2 management approach and its components

103-3 evaluation of the management approach

GRI 201: Economic performance

201-1 direct economic value generated and distributed

First report

ENERGY SERIES 300 (ENVIRONMENTAL ISSUES)

GRI 103: Management approach

103-1 explanation of material topics and their boundaries

103-2 management approach and its components

103-3 evaluation of the management approach

GRI 302: Energy 2016

302-1 energy consumption within the organization

EMISSIONS

GRI 103: Management approach

103-1 Explanation of the material topic and their boundaries

103-2 Management approach and its components

103-3 Evaluation of the management approach

GRI 305: Emissions

305-1 Greenhouse effect gases (scope 1)

ENVIRONMENTAL COMPLIANCE

GRI 103: Management approach

103-1 explanation of the material topics and their boundaries

103-2 management approach and its components

103-3 evaluation of the management approach

GRI 307: Environmental compliance 2016

307-1 non-compliance with environmental legislation and regulations

SERIES 400 (SOCIAL TOPICS)

EMPLOYMENT

GRI 103: Management approach

103-1 explanation of the material topics and their boundaries

103-2 management approach and its components

103-3 evaluation of the management approach

GRI 401: Employment 2016

401-1 new employee hires and staff turnover

LOCAL COMMUNITIES

GRI 103: Management approach

103-1 Explanation of the material topics and their boundaries

103-2 management approach and its components

103-3 evaluation of the management approach

GRI 413: Local communities 2016

413-1 operations with participation from the local communities, evaluation of the impact and development programs