2021 Chief Commitments

While 2020 was a year of extraordinary challenges, it was also a watershed year for sustainability. 2020 brought the COVID-19 pandemic, put a spotlight on deep social challenges, and saw the global economy contract. Although we are not quite out of the clear in regard to the grasp of the pandemic, 2021 allows us to move into a new decade with a new perspective of what is needed to achieve a more sustainable, regenerative and an inclusive economy.

In pursuit of this, Yakima Chief Hops has developed a series of commitments to keep us honest, accountable, and to drive positive change throughout the industry. Just as roots of a hop plant intertwine within the soil, the following commitments are deeply rooted within our corporate DNA and serve as a constant reminder that all business decisions are underpinned by our company values. Our aspiration continues to be the global hop supplier of choice, and we hope that by establishing a robust and meaningful framework around our business, we can achieve our goals by 2025.

There is a natural synergy between the long-term goals of our business and the long-term needs of the entire world. That is why we have aligned our chief commitments with the United Nations Sustainability Development Goals.

By following our Global Sustainability Strategy outlined below, we aim to prepare ourselves for the challenges of the future, continue to grow while reducing our environmental impact, and answer to the evolving needs of our key stakeholders. All of our goals have a target completion date of 2025. YCH is committed to inclusion and ensuring that, regardless of your roots, there is a place in agriculture for all. It is our ambition to continually grow as a responsible and modern business over the coming years by staying true to our mission.

EMPOWERING PEOPLE

Great people work here. Our people keep our business thriving, and in turn we want to keep them engaged, happy & healthy through our positive and empowering workplace. We are committed to ensuring that everyone in our workforce has equal access to opportunities.

Initiative: Fostering a culture that is enriching and fulfilling for all our employees

2025 Goals:

• Zero loss time incidents from employees
• Increase % of women in salaried/leadership positions
• Increase % employees with diverse backgrounds in salaried/leadership positions
• Achieve 85% employee retention rate

PROTECTING OUR PLANET

Our long-term success as a company is dependent upon the health of the planet. The decisions we make today have lasting implications for the future and it is our intention to make those positive. Acknowledging that there is no Planet B, we must treat this one we call home with care.

Initiative: Committed to conserving agricultural land and watersheds, while reducing energy and waste – on our farms and in our facilities.

2025 Goals:

• Reduce Scope 1, 2, and 3 greenhouse gas emissions by 50%
• Procure 100% renewable energy for our domestic operations
• Achieve carbon neutrality on 50% of all our shipments through Smart way logistical transactions with our freight forwarders
• Research and implement anaerobic digestion as a renewable onsite energy source for operations

GROWING OUR COMMUNITY

There is no power for change greater than a community discovering what it cares about. As a company focused on community empowerment & resilience, it is our mission to be responsible neighbors and assets to our community members.

Initiative: Strengthening our communities with meaningful intentions by focusing on driving economic growth, promoting opportunities in underserved regions, and supporting youth programs.

2025 Goals:

• Contribute 1% of sales towards community enhancement projects. The ‘YCH Foundation’
• Achieve 75% employee participation rate in YCH volunteer program
• Achieve 75% employee utilization of ‘give-back’ dollars towards NGO of their choice

THRIVING FARMS

Our growers work hard and in return we work hard for them. That hard work pays dividends, and those dividends are distributed back to our growers to invest in their equipment and facilities to continually produce quality hops.

Initiative: Committed to providing our growers with the tools, resources and education to be more efficient, economically sound, and viable for generations.

2025 Goals:

• Maintain a return to grower rate of 75% or higher
• Provide continual learning opportunities to our growers through our Green Chief Program

PRODUCT EXCELLENCE

Our purpose is to create value for all by pioneering new innovative hop products, helping our hop breeding partners gather the feedback needed to develop first class hop varieties, and pursuing unparalleled quality. We seek excellence in all our partnerships, sourcing, product design, manufacturing research, safety, sustainability, and traceability.

Initiative: Committed to holding ourselves accountable to higher standards of excellence for flavorful, aromatic and solutions-based hop products that our brewing customers love.

2025 Goals:

• Maintain a customer satisfaction rate above 90%
• 100% of our packaging materials to be reusable, recyclable or compostable
• 25% of plastic used in our packaging will be made with reusable or recycled material
• Replace 100% of mylar foil packaging

HEALTHY HOPS

There is an intrinsic relationship between healthy hops and a healthy planet. Simply put, we understand that to reap the benefits of a bountiful harvest, appropriate measures must be put in place to preserve the natural resources we heavily rely on to ensure the quality of our hops.

Initiative: Committed to implementing sustainable farming practices to promote healthy growing environment for our hops.

2025 Goals:

• 100% of our growers to be Global Gap Certified through Global Gap Certifying body
• 100% of growers participating in greenhouse gas emission tool (LCA)
• Verify 100% of our family farm facilities are ‘Green Status’ Green Chief Level

Our six commitments represent overarching ambitions for our company to stay true to our mission, articulate it and execute against it through various goals and underlying initiatives/programs.

Through the establishment of this CSR strategy, we can leverage our power together to stay accountable for our actions by keeping our commitments. We invite you all to join us on our sustainability journey. By fully understanding the current and future challenges faced by our customers, we believe we will be able to better serve you today and in the future. This requires close collaboration, openness, and transparency knowing that our sustainability efforts are much more powerful when we all work together as a unified community.