Journey to 2030

UDA.COOP

2023

Journey to 2030

UDA's Sustainability Roadmap

Journey to 2030 Table of Contents

One

Introduction

Two

Summary & Methodology

Three

Roadmap at a Glance

Five

People

Six

Planet

Seven

Principles

Eight

Procurement

Nine

Conclusion

To chart a course toward a sustainable future, we've outlined a comprehensive roadmap centered around four pillars:

People Planet Principles Procurement

Introduction In today's world, where climate change, limited resources, and the demand for ethically produced goods are on the rise, UDA recognizes the need for adaptation and transformation. We firmly believe that sustainability goes beyond mere buzzwords— it is a core value that shapes our actions, decisions, and aspirations. That’s why, in 2018, UDA proudly joined forces with the Innovation Center for U.S. Dairy and embraced the U.S. Dairy Stewardship Commitment. Through this commitment and its 2050 goals, which include achieving greenhouse gas neutrality, optimizing water use, and improving water quality, we aim to drive collaboration and progress in sustainability.

To chart a course toward a sustainable future, we've outlined a comprehensive roadmap centered around four pillars: People, Planet, Principles, and Procurement.

We understand the impact that the dairy industry and dairy processing can have on the environment. That's why we've made additional commitments to implement environmentally responsible practices throughout our operations and supply chain.

We have a deep sense of accountability for environmental stewardship, social well-being, and economic viability.

Join us on this remarkable journey toward sustainable dairy production. Let us work together to create a greener, healthier world— one drop of milk at a time. Together, we have the power to reshape the future of dairy, inspiring others to follow suit and leave a lasting legacy for generations to come.

These pillars encompass both on-farm and manufacturing aspects of our business.

Our sustainability roadmap is more than a declaration of intent—it's a call to action. We are steadfast in our commitment to transparency and accountability, consistently measuring and reporting our progress toward our sustainability goals. We wholeheartedly welcome partnerships and collaborations with individuals, organizations, and communities who share our vision.

1

Summary & Methodology After countless hours of hard work and collaboration, involving everyone from plant employees to executive leadership and producer membership, we proudly unveiled our four 2030 sustainability targets in early 2021. These targets focus on reducing greenhouse gas emissions, optimizing energy usage, conserving water, and minimizing waste.

As the year 2030 swiftly approaches, we recognized the need to go a step further and provide a clear roadmap of how we plan to achieve these ambitious goals. That's why throughout 2022, we wasted no time. We gathered an expanded group of stakeholders and organized 18 workshops. These sessions were all about putting people at the center and valuing their feedback.

We wanted to create a plan that truly reflected the needs and aspirations of our community.

From these workshops, we collaboratively established smaller milestones that will guide us on this journey over the next seven years.

These milestones, 25 in total, are a challenging and comprehensive method to better set the stage for achieving our 2030 goals. As the months and years go by, we will continue to share our progress.

2

ROADMAP AT-A-GLANCE By 2024 Internship program established Reduce city water usage by 10% Reduce energy demand for lighting by 55%

By 2023 Diversity committee created Safety Observation Program development 100% completion of ethics/bribery training by all employees each year 100% of our stakeholders have an ethics policy

By 2025 Reduce loads hauled by 33% Reduce natural gas usage by 5% Formal governance structure organized

By 2026 UDA outreach program established

By 2028 Increase the use of unused reclaim water by 50%

By 2030 Increase community contributions to groups like FFA & 4H by 15% On-farm emergency action plan and safety program established On-farm internship program established Reduce farm emissions by 35%

Increase the implementation of manure management projects Increase written NMPs through partnerships with current nutritionists All UDA dairies to have 100% corral cooling, if needed, on milking herd 100% DairyKind or FARM 4.0 participation and agreement to Annual Handling and Caretaker Code of Ethics Increase consolidation of on-farm supplier shipments via UDA service and supply route scheduling 100% supplier adherence to sustainability code of conduct

People At UDA, we put our people first. They are the backbone of our success. We recognize the importance of fostering a culture where inclusivity, fairness, and well-being are at the forefront for all our employees, farmers, and local communities.

We prioritize the creation of safe working conditions, promote diversity and inclusion, and provide opportunities for learning and development for our team.

Our commitment to investing in our people and communities has enabled us to cultivate a passionate and empowered workforce dedicated to sustainable dairy practices.

People Goals

FARM Increase community contributions to groups like FFA & 4H by 15% by 2030 On-farm emergency action plan and safety program established by 2030 On-farm internship program established by 2030

MANUFACTURING Diversity committee created by EOY 2023 100% diversity and inclusion training among all employees Safety Observation Program development by 2023 Internship program established by EOY 2024 Increase community contributions by 10% each year to $100k/year UDA outreach program established by EOY 2026

5

Planet As responsible stewards of the land and resources, we understand the profound impact our actions can have on the planet. Our goal is to minimize our environmental footprint by embracing innovative technologies, responsible land and resource management practices, and sustainable farming methods.

Planet Goals

To achieve this, we are actively implementing measures to reduce greenhouse gas emissions, promote water and resource reuse, and prioritize the well-being of our animals. By adopting these practices, we believe we can cultivate a lasting and sustainable future for agriculture.

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FARM 35% reduction in farm emissions by 2030 Increase the implementation of manure management projects by 2030 Increase written NMPs by 2030 through partnerships with current nutritionists All UDA dairies to have 100% corral cooling, if needed, on milking herd by 2030

MANUFACTURING 10% reduction in city water usage by 2024 Reduce loads hauled by 33% by 2025 5% reduction in natural gas usage by 2025 55% reduction in energy demand for lighting by 2024 Increase the use of unused reclaim water by 50% by 2028

6

Principles In the realm of sustainable business practices, principles serve as the guiding force for ethical decision-making and long-term impact.

Transparency is the guiding principle that underpins our commitment to ethical business practices. It means being open, honest, and accountable in all our dealings, ensuring that our supply chains adhere to the highest standards of social and environmental responsibility. For instance, we partner with suppliers who share our values and secure raw materials through verified sustainable sources. By doing so, we ensure that our supply chains are free from exploitation and contribute to the well-being of both workers and the environment.

We hold ourselves to the highest standards of animal care, ensuring the ethical treatment of cows throughout every aspect of our operation. From implementing strict guidelines for proper housing and nutrition to providing access to expert veterinary care, we leave no stone unturned in our commitment to the well-being and happiness of our cows.

Principles Goals

By upholding these principles, we strive to create a positive impact on the world while setting an example for others in the pursuit of a more sustainable future.

FARM 100% DairyKind or FARM 4.0 participation and agreement to Annual Handling and Caretaker Code of Ethics by 2030

MANUFACTURING 100% completion of ethics/bribery training by all employees each year beginning 2023 100% of our stakeholders have an ethics policy by EOY 2023 Formal governance structure organized by 2025

7

Sustainable and responsible procurement is key to our commitment to sustainability. We understand the importance of making informed choices and are dedicated to sourcing quality milk and other necessary supplies. Collaborating closely with our supplier partners, we actively seek opportunities to reduce negative environmental impacts and explore sustainable alternatives.

Our procurement approach extends throughout the supply chain, as we strive to build relationships with suppliers who share our values and commitment to sustainability.

Together, we can make a collective difference in shaping a more sustainable and resilient food system.

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8

Procurement Goals

Procurement

FARM Increase consolidation of on-farm supplier shipments via UDA service and supply route scheduling by 2030

MANUFACTURING 100% supplier adherence to sustainability code of conduct by 2030 Reduce and consolidate number of shipments to our plant over the next 7 years

Conclusion We're excited to share this roadmap with you as it marks a crucial step towards building a resilient and thriving dairy industry. By setting clear goals and actionable strategies, we're better equipped to tackle critical environmental, social, and economic challenges while securing the long-term success of our operations. Through collaborative efforts such as resource optimization, innovation, and stakeholder engagement, we're confident that we can make significant strides toward achieving these sustainability targets. Our ultimate ambition is to continue fostering a sustainable and prosperous dairy sector that benefits not only our farmers and consumers, but also our local and global communities.

We understand that our journey toward achieving these 25 goals by 2030 is a continuous process that will require ongoing evaluation, adaptability, and collaboration. As we move forward, we may add additional milestones to refocus and reprioritize our efforts, but we'll maintain our collective unwavering commitment to delivering a sustainable future for all. We're grateful for the support we've received so far and look forward to building more partnerships that align with our vision for a resilient and thriving dairy industry.

JOURNEY TO

9

"Our ultimate ambition is to continue fostering a sustainable and prosperous dairy sector that benefits not only our farmers and consumers, but also our local and global communities."