Select Harvest USA Sustainability & Social Responsibility

1. Select Harvest USA Sustainability & Social Responsibility

2. Select Harvest USA Select Harvest USA is a vertically integrated company that is committed to Sustainability throughout our entire organization Retail Packer Processor Sheller Grower

3. What is Sustainable Agriculture? • CALIFORNIA ALMOND SUSTAINABILITY PROGRAM • Sustainability is about ensuring that people, profit and the planet are all considered while conducting daily business. A definition of sustainability specific to almonds based on this basic definition was developed with almond growers and almond handlers in 2005, and subsequently adopted by the Board of Directors of the Almond Board of California. It reads:  • Sustainable almond farming utilizes production practices that are economically viable and are based upon scientific research, common sense and a respect for the environment, neighbors and employees.

4. Select Harvest Programs • Irrigation Management • Nutrient Management • Integrated Pest Management • Energy Efficiency • Air Quality Management • Ecosystem Management • Workplace and Community

5. 1. Irrigation Management • Soil moisture monitors Evaopo Transportation (ET) calculations • Stem Moisture Reading (Pressure Bombing) • High frequency/low volume irrigation • We use all micro sprinklers and drip irrigation to water our trees. We have started and will be continuing to add soil moisture monitoring probes in our field to be able to deliver our irrigation water and fertilizers directly into the root zone and not waste water by only delivering the water the tree needs based on data from the probes.  • The above technologies are used in conjunction with each other to develop irrigation scheduling to maximize water utilization throughout the fields.

6. 2. Nutrient Management • We compost 100% of our shells (either as whole shells or ground composted shell) and put them back in the fields boosting the organic nutrient content of the soil. This practice has also resulted in a tremendous increase in water holding capacity and microbial activity. • 100% of all the bio mass created from annual pruning and shredding activities are also re-incorporated into the orchard floor. • Our goal is to achieve zero waste in our orchards by putting everything we grow to optimal use.

7. 3. Integrated Pest Management • We currently use low volume electrostatic tree sprayers that use less material per acre than conventional sprayers. This allows us to use much less material and avoid runoff on the trees. • Spring starts with all the fungicides. The application is based on leaf wetness triggers whereas in the past we relied solely on temperature and humidity to determine our applications. • Summer focus is on insect trapping and mating disruption using Pheromone traps to get pest calculations. This helps determine when to spray vs. spraying based on time of year. • Fall is about post harvest disease control going into the dormant season. The key is to disrupt the mating season for naval orange worm. • We are using mass trap-out (combination of almond and pistachio meal). It attracts the mating females and essentially catches them on sticky traps. For every one female that we are trapping, we are alleviating thousands and thousands of eggs that she would lay. That decreases our insect pressure/damage during the hull split.

8. 4. Energy Efficiency • Constructed solar fields on many of our ranches to offset the power we use with irrigation pumps. We are in the process of converting from diesel to solar power at an investment of $9.5MM. • Turlock Installation of solar in our processing facility producing over 1 megawatt – providing approximately 70% of our power. Our Orland facility is ½ MW and provides approximately 75% of our power to that location. • Our total solar could provide power to up to 246 homes. • During the 2018 crop year, 10 propane lifts were retired and replaced with electric lifts. Invested $120K in our transportation system allowing us to improve our efficiencies and minimize the carbon footprint of material handling • Conversion to an electronic operations system reducing 90% of our paper in just the last 7 months

9. 5. Air Quality • We have eliminated orchard waste burning and instead are grinding the almond pruning's and incorporating them back out into the orchard • Utilizing solar arrays to offset carbon footprint • Conversion of diesel electric irrigation well • Conversion of existing tractors and on road vehicles to comply with CARB 2020 standards • Dust reduction utilizing a fine water mist from our pick-up machines during harvest

10. 6. Ecosystem Management • In 2013, at the height of bee health issues, we began an apiary company. As of today, we have grown it to over 4,000 colonies and produce 20,000+ queen bees annually. We ship the “queens” and packaged bees across the entire western US • Our recycling program includes all fiber, plastic, scrap wood and metal. Our employees participate by recycling bottles and cans from the breakroom • In our northern orchards, we practice ground water management • We practice ground water recharge in applicable areas by using flood irrigation • We are a member of the East San Joaquin Water Quality Coalition. This coalition develops and implements an economical and scientifically valid water monitoring program and communicates to landowners where water monitoring indicates problems. We then work to solve those problems as a group • Implemented an Electronic Bird Gard Control solution designed to effectively and permanently remove pest birds.  This random technology prevents birds from becoming habituated and keeps birds out of the property being protected

11. 7. Workplace and Community • Workplace: • Everything we do is driven by our Company Mission. We are dedicated to employees who are passionate about teamwork, integrity, commitment and respect. We strive to support our employees, their families and our grower/customer community. • To achieve this we continually improve our facilities, training programs, and employee safety. Examples of recent activities – safety recognition program, new 1800 sq. ft. employee breakroom with company subsidized amenities • We installed central heat/air in production areas minimizing extreme weather conditions • Quarterly team building lunch events sponsored by the company • Post employment opportunities internally to encourage employee growth and development

12. 7. Workplace and Community (cont.) • Community: • Support 4H and FFA club livestock projects at county fairs throughout the central valley • Support Stanislaus State University “Taste of the Valley” event • Support a school in India for under privileged children • Internship programs both administratively and in our farming • Donate almonds to non-profit organizations for fundraisers (up to 20,000 lbs. per year)

13. Select Harvest’s Commitment As new technologies and processes become available and are economically viable, we continue to educate ourselves, our employees and our growers to stay in the forefront of all sustainability practices.

14. Almond Industry Commitment Achieving Zero Waste In Our Orchards Almonds grow in a shell, protected by a hull, on a tree: products traditionally used for livestock bedding, dairy feed and electricity generation. Changing markets for these coproducts are spurring innovation for higher value uses, both economically and environmentally, with promising leads in the areas of recycled plastics, fuel, beer and more.  Further Reducing the Water Used to Grow Almonds Over the past two decades, almond farmers have successfully reduced the amount of water needed to grow a pound of almonds by 33% via improved production practices and adoption of efficient micro-irrigation technology.  By 2025, the California almond community commits to reduce the amount of water used to grow a pound of almonds by an additional 20%.   Improving Local Air Quality During Almond Harvest California almonds are harvested by shaking the nuts to the ground where they dry naturally in the sun before being swept up and collected, a process that can create dust in our local communities.  To address this nuisance, the almond community is taking short- and long-term steps to reimagine how we harvest and, by 2025, commits to reduce dust during harvest by 50%.  Increasing Adoption of Environmentally Friendly Pest Management Tools  Responsible almond farming requires protecting the crop and trees from bugs, weeds, and disease through an integrated pest management approach. This means using tools and techniques like beneficial insets, habitat removal, mating disruption and, when necessary, pesticides. To further protect our orchards, employees and communities, by 2025, we commit to increase adoption of environmentally friendly pest management tools by 25%.