ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
ORGANICALLY GROWN COMPANY
2021
BENEFIT REPORT
AN OREGON BENEFIT COMPANY ORGANICGROWN.COM
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
TABLE OF CONTENTS PAGE 5 ENVIRONMENT PAGE 10 COMMUNITY PAGE 17 COWORKERS PAGE 21 GOVERNANCE PAGE 23 SCORECARD
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
LEADING WITH PURPOSE In the midst of extraordinary events in 2021, challenges became opportunities, and the resilient character of our company, grower partners and customers helped our communities begin to recover. Together, we dealt with climate extremes, year two of responding to the impacts of COVID-19 and a rapidly shifting labor market. In every case, the OGC team dug deep and put our skills to work to support organic farmers, keep the supply chain moving and people nourished. Investing in the community is part of OGC’s purpose to create a healthier, more sustainable workplace, environment and community. We’re proud that our trust-owned business model supports reinvesting in our five stakeholder groups − coworkers, customers, growers, community allies and investors – and using our business to address some of the pressing environmental and social issues faced today. In the pages of this 2021 Benefit Report, learn how we’re taking care of each other, the planet and our stakeholders. We took a new approach to benchmarking and evaluating our practices in 2021 using the nonprofit B Lab’s Benefit Impact Assessment as an objective, independent, third-party standard. This tool meets the Oregon Benefit Company requirements and simplifies how we report to you. OGC’s impacts and progress are presented in the categories Environment, Coworkers, Community and Governance. Since it is important to provide context for our progress, we’re also including a new, year-over-year scorecard that can be found on the last page. As we publish this report, we’re welcoming OGC’s new CEO, Brenna Davis. We’re thrilled she’s here and appreciate her guidance and leadership. Stay healthy and safe. Thank you for your partnership.
OGC’s Mission Team
Brenna Davis CEO
Carla Balen Head of People
Everet Chenevert Head of Operations
Matt Mroczek VP of Finance
Mike Boyle VP of Sales & Sourcing
Sarah Brown Head of Stakeholder Strategy
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ORGANICALLY GROWN GROWN COMPANY COMPANY 2021 2021 BENEFIT BENEFIT REPORT REPORT ORGANICALLY
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
ENVIRONMENT As the ecological, social and financial benefits of organic farming and food become more and more apparent, we stay on the cutting edge of organic handling methods, supplier development and food safety practices.
ORGANIC PRODUCE Our Priority Organic farming, sourcing, handling and advocacy are the foundation of our company and our hope for the world. Forming trusting, personal relationships with the farmers we work with near and far is fundamental to who we are. That’s why 96% of the produce sold was certified organic sourced from over 350 suppliers, with 25% grown in the Northwest.
ORGANIC INTEGRITY & FOOD SAFETY OGC is an organic handling facility certified by Oregon Tilth. This enables us to provide assurances of the integrity of the organic produce we handle. Ensuring that the products we source, market and distribute are grown and handled organically and safely has always been a critical part of our business. In 2021, we welcomed Food Safety and Compliance Manager Humberto Maldonado to our team. With his leadership, we are continuing to expand our efforts to bring the safest and highest quality produce to our customers. Improvements included using an alternative alcohol-based cleaner and sanitizer and providing
technical assistance to our vendors to meet market requirements. OGC teams worked diligently to maintain and improve our facilities and practices Humberto Maldonado, Food Safety & Compliance Manager through extensive supply chain disruptions, passing our food safety and organic certification audits with flying colors. Auditors did not identify a single non-compliance with any organic standard.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Supplier Development OGC works in partnership with our growers to sustain and develop their business. Here’s just one example of a partnership nurtured in 2021. BUCIO ORGANIC FARM CARVES ITS SPOT IN SALINAS Surrounded by the Salinas Valley’s industrial-scale operations, Bucio Organic Farm produces row crops on 17 acres of prime land. OGC was introduced to young farmer/owner Rigoberto Bucio by Kitchen Table Advisors (KTA). KTA’s mission is to provide business advising and relationship-building to smallscale regenerative farmers in Northern California. KTA facilitated conversations to help Bucio and OGC understand how to best support each other. Rigoberto Bucio – Bucio Organic Farm, Salinas Valley
In the late summer of 2021, OGC had the opportunity to meet Rigoberto on the farm and tour his pristine rows of kale, celery, cucumber and more. We proudly source from Bucio Organic Farm and are looking for opportunities to work with additional diverse, small-scale growers across our sourcing regions.
Zero Waste is our Goal (we’re getting closer each year!) Becoming a zero-waste company requires a clear understanding of how and where our waste is produced. In 2021, we enlisted Portland State University MBA students to help us better understand our waste stream, identify opportunities for waste reduction, and develop time-bound goals for achieving zero waste across our facilities.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
SUSTAINABLE PACKAGING We continue to evaluate sustainable packaging innovations for OGC’s Ladybug Brand produce line. In 2021, this work included beginning a comprehensive research effort to assess alternatives or improvements to labels, clamshells, poly and netted bags and waxed boxes. 100% of Ladybug Brand potatoes packed in-house went into compostable paper bags, keeping 1.5 million plastic bags out of the waste stream last year. 45,000 waxed cardboard boxes were kept out of the waste stream in 2021 by using a water-resistant coated box that contains no wax, making it easy to recycle.
Climate Action Organic production methods that emphasize soil health help farmers increase their resilience to the impacts of climate change. Like our partners, OGC is dedicated to environmental stewardship including actions to mitigate our carbon footprint and reduce fossil fuel consumption. MEASURING EMISSIONS OGC is committed to measuring and managing our greenhouse gas (GHG) emissions by adopting Scope 1 & 2* calculating and reporting. While we have tracked these figures internally for several years, we committed to strengthening our reporting in 2021 through a partnership with the University of Oregon and external experts. These partnerships help ensure the thoroughness and accuracy of tracking as we hold ourselves accountable and set goals for the future. OGC defined 2021 as the baseline year for its GHG emissions. By taking inventory of our Scope 1 and 2 emissions we learned the impact of our direct operations and electric energy consumption. In 2021, our Scope 1 and 2 emissions totaled a CO2 equivalency of 8,378 metric tons. For context, this is similar to the annual emissions from 1,055 US homes. Measuring GHG emissions is one of the most important steps in our climate action journey. By understanding emissions hotspots, we can set emission reduction targets and develop best practices to reduce OGC’s climate impact. * Scope 1 emissions are direct GHG emissions that occur from sources that are controlled or owned by OGC. Scope 2 emissions are indirect emissions associated with the purchase of electricity, steam, heat or cooling.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
OPERATIONAL SUSTAINABILITY We strive to operate in a way that has a positive impact on the world. From the produce we source to how we operate our facilities and fleet, OGC considers its environmental impact every step of the way. Our daily operations and business decisions are guided by our values and our commitment to people, planet and purpose—not by profits alone— and a commitment to sustainability is rooted in all aspects of OGC’s operations.
OGC joined the Climate Collaborative as a leader to learn and advocate for climate policy and expand our network in the natural products sector.
100% of our building energy use is offset or sourced as renewable.
161 tons of produce was delivered by bike to Portland urban customers thanks to partner B-Line, avoiding 2,553 miles of driving!
OGC’s fleet ran on 21,676 gallons of pure biodiesel & 391,690 of ultra-low sulfur diesel.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Converting all lighting to LED with motion sensors in 2019, resulted in continued ROI in 2021. This upgrade has reduced our energy use by over 725,000 kWh/year.
We operate 24/7 utilizing our Portland facility and hubs throughout the region.
Spokane Seattle
Portland Eugene
Medford
Our fleet of power units is California Air Resource Board (CARB) compliant, the only state agency that issues air quality regulations that are stricter than the EPA standards.
Installing a compactor reduced the number of trips trash trucks make to our warehouse from over 180 per year to 11, resulting in fewer CO2 emissions generated by trash disposal.
Our coolers operate on an ammonia refrigeration system, which requires less electricity to operate and is safe for the environment, with an Ozone Depletion Potential and a Global Warming Potential rating of zero.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Tal & Inder Singh – Riverland Family Farms, Corvallis
COMMUNITY The tenacity of our farmers, the generosity of our customers, and the courageous initiatives led by our nonprofit allies strengthen the organic ecosystem every day. The following stories provide a glimpse of how OGC does business with purpose and how working with stakeholders amplified our impact in 2021.
GROWER PARTNERS Few things embody resilience better than a farmer. OGC stood in solidarity and created new support pathways during a year that disrupted all elements of production: labor, climate, input accessibility, transportation and logistics, and personal and familial health. Our farmers, the soil, and the people who tend to plants are the foundation of what we do.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
WEATHER, PARTNERSHIP & RESILIENCE Many suppliers have been bombarded by weather extremes in the past few years. And 2021 was no exception with ice storms, fires, smokey harvests, and disastrous heat waves. The June heatwave was especially devastating to Northwest blueberry growers. What could be harvested was extremely soft, resulting in lower yields and quality. OGC’s newly upgraded small fruit packing line equipment was carefully calibrated to handle the delicate berries and saved much more usable fruit than would have been possible in the past. We were proud to be able to help our farmers. If they can’t weather these extremes, none of us can. FARM TRANSITIONS OGC has seen an acceleration of farmers retiring and farmland lost. The average age of Oregon’s farmers is 60 years-old, and more than 80% of them don’t have a transition plan. When long-time supplier and ally Gathering Together Farm applied for a Mission Fund grant to research transition options, we wanted to help. An investment from OGC helped them turn to experts to explore stewardownership models.
“Like many farmers, we are looking to the future with some uncertainty of how we can continue to serve our community, partners, and workforce. Our team has had countless conversations with peers discussing options for farm succession. Yet, our operations are as diverse as the crops we grow, leaving none of us with a one-size-fits-all model.” – Joey Staub, Gathering Together Farm
Weathering Extremes Family-owned and operated Johansen Ranch, located in Northern California, dates back to 1910 and is an organic certification pioneer from the 1970s. This longtime citrus supplier and friend used a Mission Fund grant from OGC to rebuild their packing shed to withstand the severe weather patterns which have become the norm, providing added insulation to protect their crew and harvests from the intense heat and cold.
The issue of farm succession planning and protecting organic farmland is much bigger than a single farm. When our organic growing partners retire and find farmers to carry on their legacy, OGC is there to support their success. Tal and Inder Singh and Tyler Grushkowitz took over a significant part of Denison Farm when Tom and Elizabeth Kerle Denison retired in 2019. Operating as Riverland Family Farms, they now produce over one hundred varieties of organic fruits and vegetables. Visit OGC’s blog to learn about their unlikely path from Punjab to Corvallis. OGC continues to deepen relationships with Commonplace, Little Garden, Sunrise, and Eloisa farms, four other successors of longtime OGC partners Denison Farm and Springhill Organics, through sourcing, Mission Fund awards, and state-level organic advocacy. OGC’s subsidiary, Alternative Ownership Advisors is a resource farmers can use as they plan for retirement and stewarding their farm.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Our Dedication to Responsible Banana Sourcing Continues to Grow
Helping Growers Worldwide through Fair Trade Sourcing Fair Trade certified products provide assurance that farm operators have strong ethical practices, pay workers fairly, and employ growing and handling processes that are safe. OGC supports communities worldwide with funding through sourcing and selling Fair Trade produce in partnership with our customers. A small premium is included on Fair Trade certified products and returned to the communities that grew the produce. In 2021, OGC generated $125,000 to contribute to the Fair Trade Community Development Fund, which supported several producer-led projects, including: Calavo de Mexico: Healthcare Alliance Delivery of basic pantry staples & COVID-19 sanitization kits Covilli (Agrícola Ciari): Nuchi Sansekan Health Clinic Construction & Emergency Vehicle Wholesum (Crisp Greenhouses): A local mini-market for their worker community Medical & pantry staples vouchers for workers School scholarships In solidarity with our customers, OGC has raised over $936,000 in Fair Trade development funds since 2013.
GROW Scholars
In 2021, in partnership with our customers, we raised more than $133,000 to support banana-growing communities in Colima, Mexico through Organics Unlimited’s GROW program (Giving Resources & Opportunities to Workers). A small premium applied to each case of GROW bananas sold is returned to the farmers and reinvested in their communities. Here’s how that premium was invested last year: 89 scholarships, 17 for university-level education. GROW Study Center, the heart and soul of their growing communities, providing shelter from violence and insecurity and a hub for social services. Casa Amiga, for university scholars offering housing, hot meals, a cybercafe, and access to a weekly homework club. Medical & Dental Clinics, providing therapy workshops, assistance in processing medical benefits for minors and seniors, medical transportation and supplies, and health care.
OGC’s Farm to School Apple program provided a way for our retail customers to raise $23,500 for Northwest schools and nonprofits offering youth healthy eating and organic education. Visit ladybugproduce.com to learn how Fuji apples are raising funds!
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Aerial view of Viva Farm
A Record Year of Giving Last year was OGC’s biggest giving year ever. We reinvested over 9% of our prior year’s net profits into grants and donations supporting causes and businesses we believe in − organic agriculture research and education, equity in the farm and food system, eliminating hunger, and organic supply chain resiliency. We funded a constellation of regional programs using OGC Mission Fund grants, donations and sourcing that gives back to our nonprofit and supply chain partners. 2021 MISSION FUND HIGHLIGHTS Over half of the Mission Fund projects focused on building equity in our regional farm system. Meet six of our thirty-five 2021 grant recipients. Calypso Farm and Ecology Center – OGC invested in their Alaska Native Agriculture Project, which provides training and networking support for rural and Indigenous farmers. Ecotrust – The OGC grant assisted the Viviane Barnett Fellowship for Food System Leaders. This 18-month cohort-based program supported BIPOC fellows in exploring new possibilities, solving challenging problems, and creating mutually beneficial opportunities related to Indigenous and Afro-Indigenous farming practices, climate justice, and soil regeneration. Viva Farm’s Grow Food – Viva Farm empowers aspiring and limited-resource farmers by providing bilingual training in holistic, organic farming and access to land, infrastructure, marketing and capital. Kitchen Table Advisors – San Francisco-based KTA programs focus on business advising and building regional ecosystems. Wakulima USA – Wakulima USA is a nonprofit farming and food business cooperative that advances small business development and food sovereignty for low-income immigrants and people of color in the Puget Sound region. Yisrael Family Urban Farm – OGC’s grant supported the Urban Roots Initiative, providing residents, schools, and organizations with a garden for free or low-cost to increase access to fresh food. OGC prioritized investing in equity-focused projects in 2021, and 34% of Mission Fund grant dollars went to Black, Indigenous, or People of Color-led organizations. We’re committed to continuous improvement, adopting a more participatory approach to fundraising, and learning about additional ways to embed equity and inclusion into our giving approach so that philanthropic funds are a vehicle to support and empower those most marginalized in the food system.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
MEET OUR TOP GLEANING PARTNER OF 2021 Many families in our community struggle to make ends meet. With a mission to build a financially stable community, Birch Community Services provides groceries, education, and budget mentoring and accountability. OGC is very fortunate to be able to donate pallets of fresh, organic edible produce to Birch each week to remove the burden of paying for food for those trying to recover from debt.
“The donations from OGC are literally the most wholesome and healthy food we get to give to the families we serve. It feels so good to know that our families are being treated with healthy options every day.” – Andrew Rowlett, Director of Operations, Birch Community Services
Outreach OGC prioritizes educating stakeholders about our grower partners, organic produce, advocacy, and alternative ownership. With in-person engagement restricted in 2021, we turned to digital tools and platforms to engage and educate. Our work resulted in: 49 Produce Report newsletters 97 blog posts 1,456 social media posts 15,838 people learning about steward ownership via webinars, podcasts, newsletters, blog posts, the website, and client sessions offered by Alternative Ownership Advisors, OGC’s subsidiary
Over the course of the year, we also conducted stakeholder listening sessions, administered surveys, and built and distributed hundreds of “Discovery Boxes” to introduce OGC coworkers and participants in the Sustainable Food & Agriculture Perpetual Purpose Trust Gathering to peak-season produce and unique varieties.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Two Oregon Businesses Are Transitioning to Trust Ownership OGC subsidiary, Alternative Ownership Advisors (AOA), helps founders and owners of private companies design and implement ownership, governance, and investment solutions that align with mission, accelerate impact and protect independence. 2021 was a watershed year for AOA as it supported two longtime Oregon businesses in their transition to trust ownership: LifeSource Natural Foods has been a vibrant hub of organic food and community gathering in Salem, Oregon for more than 35 years. In 2021, AOA worked with founder Alex Beamer and his team to design a Perpetual Purpose Trust that will eventually hold 100% of the company’s ownership. LifeSource now has a framework to continue forward – grounded in its mission, values, and ways of doing business – for generations to come. Local Ocean Seafood, in Newport, Oregon, worked with AOA to design an Employee Ownership Trust. This ensures employees benefit from the ongoing operations of the company over time and locks down their commitment to local sourcing and sustainable fisheries.
Both LifeSource and Local Ocean are establishing their new ownership under the Oregon Stewardship Trust statute, which was passed into law in 2019 with the support of OGC.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Organic Advocacy Whether working directly with lawmakers or through our leadership within the Organic Trade Association (OTA), we’re 100% invested and embedded in ensuring that legislation supports the trade and its future. STATE LEVEL ORGANIC ADVOCACY In 2021, OGC spent significant time and money building regional and national momentum to increase state-level investments in the organic trade. In Oregon, we provided a $25,000 matching grant to help raise funds to hire Oregon Organic Coalition’s first paid staff. This will empower the organization to continue its excellent work, which has included successfully securing state funds to support organic extension and market development. In addition, our experience in Oregon is serving as a model as we uplift and support the launch of the Coalition for Organic and Regenerative Agriculture in Washington State and work to grow state-level organic advocacy nationwide through our leadership in the Organic Trade Association’s State Advocacy Network. NATIONAL ADVOCACY Since day one, OGC has been a staunch advocate of organic integrity, taking every opportunity to submit comments to the National Organic Standards Board (NOSB) – we submitted comments on 26 topics in 2021 alone! This year we also contributed to two industry efforts to uphold organic integrity and relevance into the future. The Continuous Improvement and Accountability in Organic Standards Act. OGC met with Oregon’s Federal House Representatives in 2021, which helped result in five out of six House members signing on as co-sponsors of the Act – no small feat! This bill will require the USDA to move forward on the 23 NOSB recommendations stalled in the legislative process or that have not been acted on by the National Organic Program, some dating as far back as 2002. OTA’s Future of Organic Workshops. OGC contributed over 20 pages of analysis and responses to topics, including continuous improvement, incorporating labor standards, strengthening environmental outcomes, supporting a transition, and even reimagining the organic logo. This work will guide OTA’s policy and advocacy priorities for the coming years.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
COWORKERS Living our values starts with taking care of each other.
LIVING WAGE In 2021, we invested heavily in our compensation strategy. In particular, we focused on driver pay and living wage, investing time and resources into assessing market data, updating pay groups, and revamping compensation plans. We updated our driver pay program, with wage increases for all drivers. The program recognizes the incredible tenure that many of our drivers have with OGC, as well as improves our ability to recruit professional drivers that are committed to leading the industry in safety, dependability and service. The living wage for Portland rose 24% in 2021 to $18.86/hour (it was previously $15.16/hour). Under this new calculation, 78% of our coworkers were earning a living wage by December (for a single earner/household according to the MIT Living Wage Calculator).
The majority of the work to assess pay practices and develop our approach occurred in 2021, with new programs rolled out at the beginning of 2022. We’re proud to say that, as of February 2022, all coworkers now start at a minimum of $17/hour and 89% are earning a living wage. We will continue this important work to support our coworkers with living wages, as well as look for other opportunities to share OGC’s financial success and improve their earnings through career development.
2021 Profit Sharing
In addition to wages, over 20% of the prior year’s net profits were returned to coworkers through profit sharing and wellness stipends.
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
BENEFITS Taking care of our coworkers is about more than wages. As the pandemic persisted, we provided hazard pay through July. We continued to provide paid COVID leave, offered free meals and produce boxes, an extra wellness fund benefit, and continued to provide a progressive benefits package offering:
Health insurance 401k with a 5% match, up to $3,000 Paid time off, paid/floating holidays, and catastrophic leave bank 8 hours of paid volunteer time per year PTO cash-out and zero cost payroll advance options Fitness reimbursements Free and discounted produce Wholesale bulk natural food ordering Donation matching A motion program, offering money for coworkers’ HSA/FSA just by walking HealthJoy, a telehealth app offering immediate access to benefit information SMART commute incentives for choosing more sustainable commuting options
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Our coworkers’ wellbeing is intrinsically tied to a workplace that fosters belonging, embraces diversity and leads with equity.
INVESTING IN ORGANIZATIONAL DIVERSITY, EQUITY & INCLUSION WORK Throughout our history, OGC has recognized and celebrated our differences and prioritized creating an inclusive, welcoming and diverse workplace. In 2021, we invested in Diversity, Equity and Inclusion work for the organization. We hired experts to help us host listening sessions with our Black, Indigenous and People of Color coworkers; administer a company-wide survey; and host a six-part training and workshop series for OGC managers and Board. COWORKER ENGAGEMENT & DEVELOPMENT Our coworkers are dedicated to OGC and have a desire to learn and develop their careers with us. Training and development opportunities are available to all coworkers. One example is our four-level warehouse career path program, which identifies skills and on-the-job experience required to advance. Achieving each level along the path comes with recognition, celebration and additional compensation. 14% of open positions were filled by internal candidates 7 years is the average tenure at OGC (the national average is 4.1 years)
OGC Coworker Diversity OGC POPULATION, BASED ON SELF-IDENTIFICATION:
28%
OF OUR COWORKERS IDENTIFY AS BLACK, INDIGENOUS, OR PEOPLE OF COLOR
AMERICAN INDIAN/ALASKAN NATIVE ASIAN BLACK
6% 7%
HISPANIC OR LATINO
1%
10%
NATIVE HAWAIIAN OR OTHER PACIFIC ISLANDER
4%
OUR LEADERSHIP:
17%
OF OGC LEADERSHIP TEAM* & BOARD IDENTIFY AS BLACK. INDIGENOUS, OR PEOPLE OF COLOR
57%
OF OGC LEADERSHIP TEAM* & BOARD IDENTIFY AS WOMEN
19%
OF OUR COWORKERS IDENTIFY AS WOMEN
*LEADERSHIP IS DEFINED AS MISSION TEAM, DIRECTORS, MANAGERS, SUPERVISORS
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
ANNUAL COWORKER SURVEY OGC’s annual coworker survey provides insight into what our team needs and wants, measures job satisfaction and gives everyone a voice. This feedback was even more important during year two of the pandemic. Here’s what we learned from our 2021 Coworker Engagement Survey: The highest scores were in the following categories: Clarity on role and work expectations Managers treating team members fairly Balancing personal and family life to meet coworker needs The areas where we found the most room for improvement: Ongoing feedback and development conversations with managers Communication and keeping everyone informed Career growth and developmental opportunities This feedback led to: Revamping our coworker development forms and process to simplify the conversation and focus on performance goals, personal goals and connection to the OGC mission Creating new and interactive ways to communicate company information More opportunities for coworkers who are not on email to provide feedback using onsite paper surveys and voting boards Investing in additional translation services to better support communication for all Development of Buzz of the Bizz internal newsletter (see below for more)
L AP R I
2022
FEBRUARY 2022
NOVEMBER 2021 In October, OGC’s internal newsletter, Buzz of the Bizz, made a comeback with a new look, collaborative voice and a monthly dose of organizational updates and contributed articles from coworkers.
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
GOVERNANCE Steward Ownership – Purpose over Profit into Perpetuity OGC is owned by the Sustainable Food & Agriculture Perpetual Purpose Trust (SFAPPT). We are one of the first companies in the country to embrace this alternative ownership model, which ensures our independence and mission focus into perpetuity. Learn more about the SFAPPT at www.sustainablefoodandagtrust.com SHARING OUR SUCCESS OGC’s success is inherently intertwined with our stakeholders. Built into our model is an equitable
formula for sharing our success. Once OGC’s normal business obligations have been met, including customer and vendor transactions, wages and benefits for our coworkers, community giving with our partners and base dividends for our investors; company performance may allow us to distribute an “Upside Dividend” to shareholders and stakeholders. Our strong performance in 2020 supported generous distributions in 2021. While investors received their prescribed dividends, coworkers opted for wellness stipends, Mission Fund grants supported supply chain resiliency and a more equitable food system, and we used funds to address stakeholders’ priorities related to diversity, equity, and inclusion (DEI), sustainability, and organic advocacy. All in all, nearly $2 million was returned to our stakeholder community.
“Formulating a financial strategy for a purpose-led company is full of opportunities you don’t find in traditional models. Creating a strategy that benefits our stakeholders is one way we invest into a sustainable business.” – Matt Mroczek, OGC’s VP of Finance
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ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
FORMALIZING OUR COMMITMENT TO STAKEHOLDERS In 2021, OGC created a new full-time position to engage, support and respond to the needs of OGC’s many stakeholders. We hired organic industry pro and farmer Sarah Brown to step into this role. Sarah brings years of experience leading groundbreaking national programs to create a healthy and just future for people and the planet. She has expertise in organic and sustainable agriculture and climatefriendly farming, federal farm policy, agricultural markets and industry trends, outreach, education and advocacy. Sarah is an asset to OGC and in the last year has connected with stakeholders in many ways. MEASURING OUR IMPACT & STAKEHOLDER BENEFIT In 2021, we adopted the B Impact Assessment (BIA) as our official third-party reporting standard. B Lab’s BIA is a rigorous and widely used tool to measure a company’s impact on workers, community, customers and the environment. According to B Corp, it’s rare for a company to cross the 80-point threshold their first time completing the assessment. Therefore, we’re thrilled to share that OGC’s score for 2021 was 100.2. Completing the BIA showed the many ways we’re helping our stakeholders and the environment and illustrated additional actions we can take to increase our positive impact. SCORECARD Our scorecard provides transparent tracking of our “Year-Over-Year (YOY)” impacts and highlights the indicators of special importance to OGC and our stakeholders.
ORGANICALLY GROWN COMPANY’S 2021 SCORECARD CATEGORY
ITEM
2020
2021
%Δ
NOTES
N/A
14.3
N/A
Out of 45 possible points
96.52%
96.36%
-0.2%
Products Sold – Fair Trade (%)
4.41%
4.89%
10.8%
Product Purchased NW (%)
26%
25.19%
-3.0%
745.94
954.56
28.0%
88%
89%
1.1%
2,130,830
2,105,552
-1.2%
Higher utilization of variable speed motors for refrigeration systems decreased electricity consumption.
100%
100%
00%
We purchase renewable energy credits from PGE & EWEB to offset our energy usage.
407,163
412,320
1.3%
62,399,789,303
63,218,014,620
1.3%
Scope 1-2 Emissions (CO2e Metric Tons)
N/A
8,378
N/A
Scope 3 Emissions (CO2e Metric Tons)
N/A
N/A
N/A
Total Scope 1-3 GHG (CO2e Metric Tons)
N/A
N/A
N/A
BUSINESS IMPACT ASSESSMENT SCORE – CUSTOMERS
N/A
1.7
N/A
Out of 5 possible points
BUSINESS IMPACT ASSESSMENT SCORE – COMMUNITY
N/A
47.2
N/A
Out of 100 possible points
8
15
87.5%
The number of clients supported by AOA in their journey to explore, design or implement trust ownership.
353
353
0.0%
In a year with so much disruption and challenge, it's significant to note we've maintained the same number of suppliers.
692,000
784,060
13.3%
Improved internal systems and processes have facilitated increased produce donations.
18%
9%
-50.0%
In dollars, 2021 was our biggest year of giving yet.
N/A
20.5
N/A
BUSINESS IMPACT ASSESSMENT SCORE – ENVIRONMENT Products Sold – Certified Organic (%)
PRODUCTS
WASTE
ENVIRONMENT
Waste Produced (Tons) Waste Diverted (%) Electricity Consumption (kWh) Building Energy Offset or Sourced as Renewable (%) Fuel Purchased (gallons)
CLIMATE
Total Energy Consumed (BTUs)
Alternative Ownership Advisors (Engagements)
PARTNERS
COMMUNITY
Farming Partners (#)
STAKEHOLDER GIVING
Produce Donated to Community ()
Prior year's net profit distributed to growers, customers and nonprofit partners (%)
BUSINESS IMPACT ASSESSMENT SCORE – COWORKERS
WORKPLACE DIVERSITY
COWORKERS
LIVING WAGE
RETENTION & ENGAGEMENT
Waste audit in progress.
Scope 1 emissions are direct GHG emissions that occur from sources that are controlled or owned by OGC. Scope 2 emissions are indirect emissions associated with the purchase of electricity, steam, heat or cooling.
We are currently working with outside experts to outline a scope of work for calculating our Scope 3 emissions.
Out of 40 possible points Reflects the percentage of Board of Governors, Mission Team, Directors, Managers, Supervisors who identify as Black, Indigenous, or People of Color. Reflects the percentage of Board of Governors, Mission Team, Directors, Managers, Supervisors who identify as female. 2021 was the first year that we brought in an applicant tracking system and included demographics as part of the hiring process.
BIPOC in Leadership & Board (%)
4%
17.39%
334.8%
Women in Leadership & Board (%)
48%
57%
18.8.%
Black, Indigenous, and People of Color Coworkers (%)
N/A
28%
N/A
Coworkers at or above living wage (%)
N/A
78.00%
N/A
See page 18 of the Report to learn more.
Average Tenure (Years)
6
7
16.7%
Average national tenure is 4.1 years.
Coworker Engagement
N/A
Coming in 2022
N/A
In 2022 we've adopted a platform for assessing coworker engagement. Use of this will support the development of this score for 2022 and beyond.
Internal Promotion (%)
N/A
14.40%
N/A
% of open roles filled with internal candidates
BUSINESS IMPACT ASSESSMENT SCORE – GOVERNANCE SFAPPT QUALIFIED STAKEHOLDERS
GOVERNANCE ENGAGEMENT
N/A
1.7
N/A
Out of 20 possible points
144
150
4.2%
We encouraged our community to become Qualified Stakeholders throughout the year.
GOVERNANCE MISSION & OVERSIGHT
OGC sourcing fluxuates based on supply chain availability and customer ordering and always prioritizes organic.
Upside Stakeholder Dividends (dollars)
BUSINESS IMPACT SCORE ASSESSMENT
$625,325.00
$694,651.00
11.1%
Upside stakeholder dividends are funds remaining after operating costs, capital expenditures, profit sharing and base dividend are allocated and/or distributed. They were distributed in the form of Mission Fund grants, coworker wellness stipends, funds to support key stakeholder priorities, and upside dividends to investors.
N/A
100.2
N/A
According to B Corp, it’s rare for a company to cross the 80-point threshold their first time completing the assessment.
24
ORGANICALLY GROWN COMPANY 2021 BENEFIT REPORT
Organically Grown Company appreciates the leadership, experience and guidance provided by our dedicated Board of Governors, the SFAPPT Trust Protector Committee and Trust Enforcers. BOARD Brian Rohter | Hood River, OR Cathy Calfo | Santa Cruz, CA Cecil Wright | Viroqua, WI Maia Larson | Springfield, OR Mike Bedessem | Hudson, WI
TRUST PROTECTOR COMMITTEE David Lively | Eugene, OR George Siemon | La Farge, WI Joe Rogoff | Guerneville, CA Jyoti Stephens | Vancouver, BC Natalie Reitman-White | Kimberley, BC
TRUST ENFORCERS Andy Westlund | Scio, OR Robbie Vasilinda | Eugene, OR Mike Neubeck | Eugene, OR ARE YOU AN OGC CUSTOMER, GROWER, INVESTOR, COMMUNITY ALLY OR COWORKER? If you fall into one of these groups, you have the opportunity to influence how our business is run by becoming a Qualified Stakeholder. Consider Submitting an Expression of Interest.
organicgrown.com