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Strategic Focus:

Sustainability

As TGOD works towards cultivating and developing cannabis solutions to make peoples’ lives better, we are cognisant of the impact that we have on the society we live in, in addition to our adult consumers, patients, healthcare providers, governments, investors and employees.

COMMITTED TO MAKING SUSTAINABILITY A STRATEGIC FOCUS.

Environmental

Environmental

We care deeply about the world future generations will inherit. We grow our premium organic cannabis in living soil, reduce waste, conserve water , and let nature lead the way.

Social

Social

TGOD values our social license to operate and acknowledge that we must act with care, integrity, and respect in every community in which we operate.

Governance

Governance

TGOD believes that strong corporate governance is critical to the performance and long-term success of the Company.

Our Commitment

We are determined to make a positive impact while being a successful company. It is a responsibility that we take very seriously, especially considering the challenges our society is currently facing.

This section highlights TGOD’s commitment to environmental, social and governance priorities (ESG), as well as our purpose-driven, principles-led approach to delivering leading performance.

Letter from the CEO

At The Green Organic Dutchman, we believe that Making Life Better or our patients, customers, shareholders, families and communities means doing the right things, for the right reasons, the right way. We are striving to be proud of both the results we are aiming to achieve, and how we got there.

Our core principles, acting responsibly, with care, integrity, and respect in the pursuit of excellence, are transcendent ideals that remain essential standards when we do business. These principles are the foundation of our sustainability program.

I am pleased to highlight our accomplishments so far, but also want to state the intent to produce a formal sustainability report in the future. A few of these recent accomplishments include the Good Neighbour program in Ancaster, Ontario, as well as a community farm where organic fruits and vegetables are grown by summer students and then donated to a local community outreach organization. Our certified organic cannabis ensures that no synthetic pesticides are used, and we have invested in LED lighting systems and in rainwater recapture basins for our hybrid greenhouses. We have also developed and published multiple compliance and governance policies deployed by our legal, finance and human resources teams. We are committed to acting with accountability and transparency.

We plan to continue building on our current progress and move towards incorporating sustainability into our business strategy. We are striving to expand our leadership of sustainability in the cannabis industry and are committed to this vision.



Brian Athaide
CEO

Environmental

What we believe:
We care deeply about the world future generations will inherit. We grow our premium organic cannabis in living soil, reduce waste, conserve water , and let nature lead the way.

Our certified organic cannabis is grown in living soil, putting the flower in charge. It is created from a collection of natural ingredients that nourish the beneficial bacteria and fungi necessary for organic nutrient processing and slow-release root absorption. The soil is a “buffet for the plant” to ensure that it can select the ingredients that it most desires for optimal yield and growth. It also allows us to send significantly less waste to landfill compared to traditional cannabis growing operations as the same soil can be used to grow many plants over several years.
Our purpose-build facilities allow for absorption of natural sunlight. Paired with a LED lighting system that uses 40 percent less energy than standard high-pressure sodium lights, it gives us the ability and efficiency to grow at any time of the day, any time of the year while reducing decreasing our environmental footprint. The full spectrum light provided by the sun and the LED system delivers a healthier plant with improved terpene profiles and significantly cuts down our time to harvest.
Our hybrid greenhouses were designed with the goal of achieving LEED® Certification standards. LEED® (Leadership in Energy and Environmental Design) is a rating system for green buildings that is internationally recognized. The purpose-build facilities are the result of several years of research and development and allow for total control of the environment from light, air, temperature, humidity, and more. These advanced controls enable operational optimization, waste reduction and maximizes plant health. Our Ancaster operations uses a cogeneration natural gas power plant while our Valleyfield operations uses hydroelectricity.
We have invested in a rainwater recapture system at both our facilities. It collects rainwater (and melting snow) from the roof, recapture basin and other areas. Our ponds hold 5 million liters of water - equivalent to two Olympic-sized swimming pools. Pipes run along the roofs of the greenhouses and support buildings sending water through downspouts to the pond via gravity and water pressure. The water from the pond goes through ultra filtration using a 15-microns filter and passes through UV light for disinfection. Afterwards the water is stored in one of seven clean, raw water tanks inside the buildings. We also use a sophisticated irrigation system to deliver controlled amounts of water to the plants. A condensation water system works to capture water vapour that is present in the air in the greenhouse or on the glass windows and uses heating, ventilation, and air conditioning (HVAC) units to collect the water. With all these measures, we drastically reduce our need to draw fresh water from the local well systems.
Our packaging is a key component of the sustainability story. TGOD considers the impacts of our supply chain and the materials we use. Where possible, we use recyclable glass and recycled paper product packaging better meant for repurposing. As an example, our quality glass jars can be upcycled into a lifetime of household items. Our packaging development team ensures that all our packaging is developed with sustainability as top of mind while still adhering to government regulations.
Agricultural practices are used daily at TGOD as we cultivate our premium certified organic cannabis. So, it is no surprise that organic farming is an indispensable agricultural practice for our business. In order to continue to educate others and advocate for organic products, we support agriculture associations and organizations with similar ideologies. We are proud to have memberships to several agricultural associations including Canadian Organic Trade Association (COTA), Canadian Organic Growers (COG) and the Ontario Federation of Agriculture (OFA). These organizations promote and support farmers, landowners, scientists, agronomists, businesses, community organizations, governments, and consumers on matters related to food, farming, organic, climate change and more. TGOD wants to ensure that Canada’s organic industry has excellent standards and regulations to stimulate its growth.

We also were the first cannabis company to complete an Environmental Farm Plan (“EFP”). The EFP is a voluntary assessment used to assess 23 distinct environmental areas on the farm. TGOD’s EFP was conducted in preparation for a comprehensive environmental and sustainability plan. We were able to highlight our environmental strengths and identify areas of concern.
TGOD is a participant in ‘Operation Pollinator’. This international biodiversity program is focused on promoting the health and well-being of bees and other pollinating insects on commercial farms given their essential role in agriculture and nature. TGOD planted roughly 1 acre of land in pollinator seed mix which was inspected by an Ontario Soil and Crop Improvement Association (OSCIA) field agent in the summer of 2019. By planting this mix, pollinators were attracted to the community farm and pollinated the plants.

Barn swallows are a bird species that are endangered in Ontario. To help in the swallows’ population recovery, TGOD participates in the Barn Swallow Project by installing and monitoring one dozen nesting cups on the community farm. The nest cups are monitored, and the results are reported to the Ministry of Environment, Conservation and Parks (MECP). In 2019, mud was seen at some of the nesting cups indicating that nest building has begun. Several barn swallows have been reported on site—feeding, hovering about the shelter and singing on the hydro lines. In summary, TGOD is helping to preserve this bird species by providing shelter and nesting sites and participating in the monitoring process.

Social Values

What we believe:
TGOD values our social license to operate and acknowledge that we must act with care, integrity, and respect in every community in which we operate.

Our community farm grows food for donation to a local charity that not only distributes food, but educates individuals, provides support for new mothers and financial counselling. As of December 2019, approximately 14,900 lbs of fresh food from the community farm has been donated to local food share initiatives. Each summer, students from the community are hired to work on the farm and learn about sustainable and organic farming and standards.
In 2019, TGOD established our volunteer group called “Rooted in the Community”—named to showcase how important it is for us to be an integral part of the communities where we operate. They recently participated in the Great Canadian Shoreline Cleanup and Coldest Night of the Year in Hamilton.
To us, being a good neighbour means taking care of the communities we are a part of. A “Good Neighbour” program was implemented in Ancaster to provide an outlet for community members to share any questions, concerns, or general feedback about operations at our Ancaster facility. It is critical to maintain our social license to operate and being a good neighbour is an integral component.

As part of that desire to be good neighbours, we installed blackout blinds in our greenhouse for nighttime use to reduce light pollution. Our neighbours were concerned about our light usage at night and how it would affect their homes and farms. We listened and added these blinds to continue to be good neighbours.
TGOD is always eager and excited for different organizations and individuals such as the Ontario Federation of Agriculture, local councillors, politicians, and others to tour our facilities. Our employees are passionate about educating others about our organic growing processes and state-of-the-art facilities.

Governance

What we believe:
TGOD believes that strong corporate governance is critical to the performance and long-term success of the Company.

Business ethics are extremely important and valued at TGOD and the tone from the top is clear and consistent on importance of governance & compliance. Corporate governance policies and procedures are in place. For instance, our Quality Assurance team reports directly to the CEO to avoid potential conflict of interest. Our legal, finance and human resources teams deploy our compliance and governance policies to all employees and our Supplier Standards of Conduct ensures that we do business with like-minded organizations. As an equal opportunity employer, we are committed to maintaining a workplace environment free from discrimination.

Size of Board

6

Number of Independent Directors (%)

5/6 (83%)

Our Audit Committee is 100% independent

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Our Corporate Governance & Nominating Committee is 100% independent

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Our Compensation Committee is 100% independent

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Majority Voting Policy

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Separate Board Chairman and CEO

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Position descriptions for the chairman, each committee and CEO

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In Camera Sessions of Independent Directors

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Formal Written Board Mandate

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Board Committee Charters

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Code of Business Conduct and Ethics

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Compliance Manual

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Delegation of Authority and Contract Approval Policy

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Anti-Corruption Policy

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Insider Trading Policy

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Whistleblower Policy

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Disclosure and Confidentiality Policy

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Conflict of Interest Policy

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Promotional Materials Review Policy

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Data Protection Policy

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Directors and Officers Share Ownership Policy

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Anti-hedging Policy

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Executive Compensation Claw Back Policy

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Diversity and Inclusion Policy

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Shareholder Engagement Policy

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Board Orientation and Continuing Education for our directors

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Formal Board Evaluation Process

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Board Skills Matrix

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Our Corporate Governance & Nominating Committee Charter details corporate governance matters, including the size and composition of the Board of Directors The charter states that the majority of the board must be independent. Currently, five of six board members are independent. Furthermore, Board efficacy will be assured through annual and periodic comprehensive assessments of directors and committee members, as applicable, evaluating overall effectiveness and performance. The results are presented in a report and further action to improve performance is taken when appropriate. We are also committed to have diverse representation on our board of directors.
Pro-Cert's certification programs are ISO 17065 compliant and accredited, providing global recognition and international access to the products and brands they certify.

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