ESG

Environmental, social, and governance (ESG) criteria are a set of standards that Farms Close By operations that our stakeholders, including our investors, can use to judge to determine our social and financial value. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.

This is why we are focusing on ESG:

• Millennials and future generations care
• Purpose-driven corporate culture—shift to stakeholder capitalism
• Sustainable companies are less risky— able to avoid risk events
• ESG integration has become a priority for active investors to pick “winners”
• Long-term investors care now more than ever to find strong ESG companies
• Focusing on ESG can open new pools of capital

The following are examples of how we meet each of the criteria.

Environmental

Non-Plastic Packaging - We use clear packaging made from sugar cane that is biodegradable and does not need to be recycled.

Hyper-local Farm Locations - Our hub and satellite farm locations will be inside population centers. Because of our close locations to consumers, we have very small transportation needs.

Very Low Water Use - All our food is grown in systems that require very little water consumption and replenishment.

Clean Energy Generation - We use CHP (Combined Heat to Power) systems that utilize natural gas to create our own electricity, air conditioning, steam, and heat. Carbon Dioxide is also created from the process with the gas piped into the plant growing system areas to be consumed by the crops to enhance their growth. We also use solar panels to also generate electricity. Excess electricity is placed back on the local electric grid.

Chemical Free Crop - We will use no pesticides and make our own liquid fertilizer from plant waste created within our farming operations.

Social

Equal Opportunity - We seek to diversify our workforce to reflect the diversity of our consumer base. We also design our jobs to permit for employment of handicap workers.

Food Desert Elimination - We continuously look to operate farming operations within or near food deserts to provide food in neighborhoods that have lost grocery stores.

Daycare - Our hub operations operate employee daycare centers to assist our associates.

Financial Education - We provide financial education to our associates to assist them to better manage their money and make better long-term investment decisions.

Increase Minority Farmers - We assist minorities to own farms to reverse the reduction that occurred since the 1920s in America.

Governance

Diversity - The Farms Close By Founders and Board of Directors is composed of diverse members that exceed what is found in most all corporations.

Executive Compensation - We maintain that our executives should have a compensation package that is both fair and in line with our associate workers compensation.

Shareholder Democracy - We maintain that all shareholders have an equal opportunity to be heard regarding matters of company operations and policy.

Data Privacy and Protection - We will purposefully utilize the best methods possible to protect corporate data in the best manner to prevent data theft or alteration, bribery and corruption..

ESG Review - We will audit all ESG efforts to make sure that our ESG initiatives are advancing. We will look to further the development of new ESG initiatives whenever it is deemed necessary.

Contractor ESG - We will look to do business with contractors that embrace compatible ESG policies.