The Andersons, Inc. (ANDE) 2024年CSR報告「NASDAQ」.pdf

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1、BUILDING A SUSTAINABLEFUTURE2024 SUSTAINABILITY REVIEW 3 A Letter from Chairman and CEO Pat Bowe4 2023 Sustainability Highlights 5 Where We Operate6 Business Units7 Serving Critical Links Across the North American Ag Supply Chain 9 The Andersons Impact on Economic Growth10 Key Stakeholders11 Materia

2、lity Assessment12 Commitments,Targets,and Goals 15 Our Commitment to Sustainable Development Goals16 Our StrategySUSTAINABILITYAT THE ANDERSONSOVERVIEW18 Our Approach to Environmental Action19 Biodiversity21 Biodiversity Through Environmental Innovation 25 Biodiversity Through a Sustainable Supply C

3、hain 26 Sustainable Water Practices 27 Focusing on Climate Change29 Reducing Our Waste Impact30 Measuring Our Environmental Performance PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICES32 Who We Are35 Talent Development39 Performance Management40 Employee Benefits 41 Employee Engagement Surveys42

4、 Health and Wellness43 Supporting Our Communities45 Supporting Agriculture46 Awards,Certifications,and RecognitionGROWING AS A COMMUNITY57 Our Approach to Corporate Governance58 Our Leadership Team59 Board Committees60 Sustainability Leadership61 Policies and Regulations63 Management Systems64 Risk

5、and Opportunity Management 65 Cybersecurity and Data Privacy66 About this Review 67 Data Quality68 Glossary69 Performance Tables75 Forward Looking Statement GOVERNANCE-INTEGRITY ANDACCOUNTABILITY 8 17 31 56TABLE OF CONTENTSTABLE OF CONTENTS48 Everyone owns Safety49 Road 2 Zero-Our Approach50 Road 2

6、Zero-Safety Culture51 Life Critical Policies and Process Safety52 Emergency Response54 Safe and Sustainable Supply ChainFOSTERING A SAFETY CULTURE 47SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPE

7、RFORMANCE DATA3A LETTER FROM CHAIRMAN AND CEO PAT BOWEFor more than 75 years,The Andersons has been committed to doing business the right way.Our actions continue to be guided by the values of goodness,integrity,fairness,and respect as outlined in the Statement of Principles developed by our founder

8、s.We believe that we create the most value when we build beneficial,enduring,and mutually reinforcing relationships with our employees,customers,communities,and shareholders.This also requires us to take careful consideration for the natural world and quality of our environment as they are foundatio

9、nal to the success of our business.Pat BoweChairman and Chief Executive OfficerIn connection with the study involving our Smartphos DG technology,The Andersons will make in-kind annual donations to the project,as well as a$60,000 match to upgrade the Defiance Agricultural Research Association proper

10、ty where some of the testing will take place.IDENTIFYING SUSTAINABILITY PRIORITIESIn 2023,we set out to clearly identify the Environmental,Social,and Governance(ESG)topics that were most important to our stakeholders and our business.Through the engagement of a third-party consultant,we completed ou

11、r first formal materiality assessment.The assessment involved aligning information from our key stakeholders,our company philosophy,and well-recognized reporting frameworks while considering our impact on the environment and society,as well as how sustainability issues might affect our business.The

12、overarching results of this assessment are available for review on page 11 of this report.SETTING GOALS AND ESTABLISHING BASELINESIn addition to the materiality assessment,we are also publishing our first set of goals,with the progress we are making toward reaching them.For several areas,including c

13、limate,waste,and water,our goal is to complete an assessment of our operations and establish a baseline on which we can begin focusing.For others,such as safety,we have set targets to achieve safety ratings better than the industry average.We remain committed to continuous improvement and anticipate

14、 focusing on providing updates on our progress in nearly a dozen key areas on an annual basis.REDUCING AND SEQUESTERING CARBONThe reduction of Greenhouse Gas(GHG)emissions remains an important priority across our business.In 2024,we submitted a commitment letter with the Science Based Targets initia

15、tive(SBTi)with a goal of finalizing our Scope 1 emissions data and beginning to set reduction targets.We have already begun acting at many of our facilities to implement lower-carbon alternatives.Additionally,we continue to explore the opportunities for sequestering carbon at our ethanol facilities,

16、which will not only help to reduce emissions,but also bring opportunities for us to lower our carbon intensity and supply key ingredients for more sustainable fuels.Finally,we also recently began collaborating with the Peter Ballantyne Cree Nation of Saskatchewan and Climate Smart Services,Inc,to he

17、lp market carbon credits for a series of land-use projects launching in 2024.These projects use improved forest management techniques to help reduce net GHG emissions by permanently converting logged forests to protected forests.PROTECTING WATER AND PROMOTING BIODIVERSITY This year we placed an emph

18、asis on protecting our waterways and promoting biodiversity.Our team continues to make strides in bringing innovative solutions to market that address some of the environmental challenges faced in our industry.For example,our Smartphos DG technology was awarded an$850,000 grant in research funding f

19、rom the U.S.Environmental Protection Agency(EPA)s Great Lakes Restoration Initiative to understand how the slow-release granules could help reduce the movement of agricultural phosphorus run-off in Ohios waterways.Im proud of the accomplishments of our team this past year as we continue to focus on

20、building a sustainable future for our company and our world.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA42023 SUSTAINABILITY HIGHLIGHTSNEARLY 7,000community service hours 6 EMPLOY

21、EE-LED RESOURCE GROUPS448,898 HOURSworked by Renewables team with zero OSHA recordable injuries 100%of new manager training participants received unconscious bias training 19,655 METRIC TONSof waste diverted from landfill OVER$185,000granted to employees in education assistance BEST-IN-CLASS PARTICI

22、PATION RATES in annual employee engagement survey and ABOVE BENCHMARK in overall engagement score*based on data provided by third-party survey vendor Culture AmpSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNAN

23、CEGLOSSARYPERFORMANCE DATA5SKABMBBCONQBMEXICOPUERTO RICOSWITZERLANDUNITED KINGDOMWHERE WE OPERATE$14.75B Revenues$405M Adjusted EBITDA(1)2,334 Employees125 LocationsTHE ANDERSONS$10.43B Revenues$155M Adjusted EBITDA(1)TRADE$943M Revenues$62M Adjusted EBITDA(1)NUTRIENT&INDUSTRIAL$3.38B Revenues$230M

24、Adjusted EBITDA(1)RENEWABLES*Financial results for the year ended December 31,2023.(1)Non-GAAP financial measure;see materials on our investor website for reconciliations.TRADE LOCATIONNUTRIENT AND INDUSTRIAL LOCATIONRENEWABLES LOCATION82TRADE FACILITIES39NUTRIENT&INDUSTRIAL FACILITIES4RENEWABLES FA

25、CILITIES*As of May 16,2024ROMANIASINGAPORESUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA6THE ANDERSONS AT A GLANCE 100+Commodities Merchandised 36M Tonnes Traded 168M Bushel Grain S

26、torage CapacityTRADE 1.2M Tons of Feed Products Produced 1.3B Pounds of Veg Oils Merchandised 488M Gallons of Ethanol ProducedRENEWABLESNUTRIENT&INDUSTRIAL 10 Retail Farm Centers 1.9M Tons of Nutrients,Specialty Products,Industrial Inputs,and Corncob-based Products Formulated,Stored,and Distributed

27、30+U.S.PatentsVolume data for the year ended December 31,2023.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA7SERVING CRITICAL LINKS ACROSS THE NORTH AMERICAN AG SUPPLY CHAINCONSUMER

28、FOOD PRODUCTPROCESSORCONSUMERMEAT PACKERFEEDERCONSUMERRETAILERREFINERY BLENDERETHANOL PLANTTRADE ELEVATORFARMERFARM CENTERFERTILIZER PRODUCERNUTRIENT WAREHOUSESUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCE

29、GLOSSARYPERFORMANCE DATA8SUSTAINABILITY AT THE ANDERSONSThe Andersons Rannoch,Ontario,CanadaThe Andersons Impact on Economic GrowthKey StakeholdersMateriality AssessmentCommitments,Targets,and GoalsCommitments to Sustainable Development GoalsOur Strategy91011121516SUSTAINABILITYAT THE ANDERSONSSUSTA

30、INABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA9THE ANDERSONS IMPACT ON ECONOMIC GROWTHAs a company operating within many communities,we understand the importance of shared value by provi

31、ding income through employee salaries;making donations from the company,our corporate foundations,and our employees;sponsoring employee volunteer events;and paying taxes that support local economies.We are advancing both the economic and social environment in the communities we operate while growing

32、 our company.SUSTAINABILITY AT THE ANDERSONSOVER$300 MILLIONpaid to over 2,250 suppliers and business partners for goods and servicesOVER$750,000donated by employees to more than 700 charities$25.4 MILLIONreturned to shareholders in dividends$330 MILLIONpaid in wages and benefits to over 2,300 emplo

33、yeesIncludes all labor,benefits,and incentives for any type of employee,including contingent workers.$45.7 MILLIONpaid in income taxesAmount are for the year ended December 31,2023.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SA

34、FETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA10Our deep commitment to service is embedded in our approach to doing business and reflected in the concurrent relationships we have with customers,employees,shareholders,and the world we share.Our sustainability strategy promotes the beliefs and traditi

35、ons communicated within our Statement of Principles.As responsible members of our community,we believe in conducting our affairs with integrity and taking the appropriate steps to protect the quality of the environment,while addressing the issues and risks associated with the agricultural industry.T

36、his daily commitment drives our sustainable journey.SUSTAINABILITY AT THE ANDERSONSKEY STAKEHOLDERSGOVERNMENT SEC Filings Business Ethics Regulatory and Permitting ComplianceCOMMUNITIESFINANCIAL SECTORSUPPLIERS Policy Reviews and Development Product Safety Audits and Certifications Community Outreac

37、h and Investment Training Programs Local Employment Membership Associations Wellness Programs Employee Communications Diverse Portfolio Investor Presentations and Conference Performance Expectations Human Capital Annual Shareholder Meeting Press Releases Supplier Code of Conduct Sustainable Developm

38、ent Contract Management Supplier Diversity Supplier Education ProgramsSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA11In 2023,The Andersons engaged a third-party consultant to compl

39、ete a materiality assessment.This systematic process engaged key stakeholders,including employees,customers,suppliers,community,and government agencies,to identify and prioritize the specific ESG topics that are relevant to our business,and plotted them on a quadrant map.The assessment considered th

40、e companys philosophy and public reporting,as well as well-recognized rating frameworks,and industry standards.It also included a peer benchmarking analysis to align with significant topics relevant to the agriculture industry.The focus was to determine the topics with direct or indirect impact on o

41、ur ability to create,preserve,or erode economic,environmental,and social value for The Andersons,our stakeholders,and society at large.A double materiality approach was taken,as it evaluated our impact on the environment and society,as well as how external sustainability issues might affect the comp

42、anys bottom line.In this process,we took careful consideration of The Andersons Statement of Principles developed by our founders,which expresses the beliefs,philosophy,and operating principles of how we treat our employees,customers,and communities.To read the Statement of Principles in its entiret

43、y,go to AndersonsI.SUSTAINABILITY AT THE ANDERSONSMATERIALITY ASSESSMENTSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA12COMMITMENTS,TARGETS,AND GOALSTOPICClimateEnvironmentalWater S

44、tewardshipWasteBiodiversitySTATUSIn ProgressGOALCURRENT PROGRESSIn ProgressIn ProgressIn ProgressIn ProgressIn ProgressComplete an assessment and validation of our GHG emissions to establish a baseline.Conduct a water risk assessment.Secure LEED Certification for Overland Park,Kansas,office by 2025.

45、Achieve WHC Conservation Certification for Maumee,Ohio,headquarters by 2026.We are currently working through the SBTi process.We are gathering and validating our energy consumption across all operations and our supply chain to establish an accurate baseline.We anticipate working to improve from the

46、baseline by using renewable energy,upgrading facilities,sequestering carbon,and reducing energy consumption.We expect to have a goal established in 2025.The Andersons sets annual Environmental Reportable Incident Rate(ERIR)goals to continuously improve performance across the company.This metric weig

47、hs serious pollution events,of which our goal is always zero,regulatory reportable events/excursions from permit requirements,and formal notices of non-compliance from regulatory agencies.These incidents are then weighed by hours worked within each business to normalize performance.We are conducting

48、 a water risk assessment to review consumption at all facilities.The Andersons will engage a third-party consultant to provide a basis to determine our water reduction goal.We are conducting a company-wide waste analysis to see which locations have access to a waste reduction process,as not all loca

49、tions have access to recycling services.The survey will help determine how sites can manage their waste to achieve minimal landfill usage.Our goal is to have all facilities utilize one recycling option by 2030.The corporate office in Overland Park,Kansas,has started the process to attain LEED Certif

50、ication,which it expects to receive by 2025.The Andersons headquarters in Maumee,Ohio,is in the process of the attaining WHC Conservation Certification.The 55-acre location is home to several wildlife habitations,including deer,coyote,ducks,butterflies,bees,wildflowers,and grasses.Achieve an ERIR of

51、 0.91 for 2025.Conduct a waste analysis in 2024.SUSTAINABILITY AT THE ANDERSONSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA13COMMITMENTS,TARGETS,AND GOALSTOPICSTATUSGOALCURRENT PR

52、OGRESSSustainable Agriculture/InnovationIn ProgressIn ProgressTreat 15,000 acres of land with regenerative liquid organic nitrogen by the end of 2026.Continue to create and partner in the development of Sustainable Sourcing projects that help our customers meet their goals and benefit farmers.Determ

53、ine appropriate 2030 goal(s)given current projects underway and assess market projections to 2030.The Andersons has signed a letter of intent with a third party to offtake and distribute regenerative organic liquid nitrogen starting late 2024.The Andersons is currently working with a few food brands

54、 on customized projects focused on regenerative practice adoption and GHG emissions mitigation.We are also working with other customers to meet their sourcing goals through the use of recognized sustainability platforms.Workplace SafetyIn ProgressWe will strive to have our operations achieve an annu

55、al Occupational Safety and Health Administration(OSHA)ORIR and LTIR better than industry average based on U.S.Bureau of Labor Statistics.Achieve OSHA Recordable Incident Rate(ORIR)/Loss TimeIncident Rate(LTIR)target better than industry groups annually.In ProgressOur goal is to build an Interdepende

56、nt safety culture based on dss+Bradley Curve,which is characterized by teamwork and mutual care among our employees.We will continue conducting a safety survey to guide our actions and focus on building safe behaviors in our teams.Improve Safety Culture-Relative Culture Strength to achieve an Interd

57、ependent rating.Community EngagementIn ProgressEngage all locations annually to participate in either monetary or hands-on activity.The Andersons goal is to have 100%of our locations(125)engage their communities through financial giving or volunteering.Each year,we communicate with employees on thes

58、e opportunities and 54%of employees personally participated in 2023.SUSTAINABILITY AT THE ANDERSONSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA14COMMITMENTS,TARGETS,AND GOALSTOPIC

59、STATUSGOALCURRENT PROGRESSStatement of PrinciplesCybersecurityIn ProgressIn ProgressEmployees,directors,and officers complete mandatory Code of Conduct training annually.We performed our annual training for all employees and periodically highlight emerging risks or cybersecurity matters when appropr

60、iate.Our programs align with the National Institute of Standards and Technology Cybersecurity Framework standards for cybersecurity.Employees,directors,and officers will complete mandatory Code of Conduct training in line with the core values stated in our Statement of Principles.We update and rotat

61、e topics from year-to-year,adding new content as required to address new or changing legal and compliance risks.Host mandatory education and training on cybersecurity for our employees and monitor risks associated with third-party vendors.Employee DevelopmentIn ProgressCultivate a workplace of belon

62、ging where each employee is a part of a team as their authentic self.We have created a leadership council with senior leadership representation to focus on developing,supporting,and driving the initiatives of our Employee Resource Groups(ERGs)that provide our workforce with shared interests or ident

63、ities,an open forum for support,professional development,and community.In ProgressWe strive for a culture of employee wellbeing which promotes the physical and mental wellbeing of employees.Our employees wellbeing is important to our success,therefore,we offer robust wellness programs,mental health

64、support resources,and policies that enable work-life balance.In ProgressWe seek to have an engaged workforce and a culture of feedback.We will measure and have improved employee engagement and job satisfaction,which leads toward becoming an employer of choice,increased productivity,and retention.We

65、have best-in-class participation rates for our employee engagement survey and above benchmark engagement scores according to our third-party vendor,Culture Amp.SUSTAINABILITY AT THE ANDERSONSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOST

66、ERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA15OUR COMMITMENT TO SUSTAINABLE DEVELOPMENT GOALSTHE ANDERSONSZERO HUNGEREnd hunger,achieve food security and improved nutrition,and promote sustainable agriculture2024 Sustainability Review:Sustainability At The Andersons-Biodiversity pages 20

67、-25;Fostering a Safety Culture Safe and Sustainable Supply Chain pages 54-55QUALITY EDUCATIONEnsure inclusive and equitable quality education and promote lifelong learning opportunities for allCLEAN WATER AND SANITATIONEnsure availability and sustainable management of water and sanitation for all202

68、4 Sustainability Review:Pushing Forward with Environmentally Sound Practices-Sustainable Water Practices page 26DECENT WORK AND ECONOMIC GROWTHPromote sustained,inclusive and sustainable economic growth,full and productive employment,and decent work for all 2024 Sustainability Review:Growing as a Co

69、mmunity pages 32-45CLIMATE ACTIONTake urgent action to combat climate change and its impacts2024 Sustainability Review:Pushing Forward with Environmentally Sound Practices pages 18-30LIFE ON LANDProtect,restore,and promote sustainable use of terrestrial ecosystems,sustainably manage forests,combat d

70、esertification,and halt and reverse land degradation and halt biodiversity loss2024 Sustainability Review:Pushing Forward with Environmentally Sound Practices pages 18-25PEACE,JUSTICE,AND STRONG INSTITUTIONSPromote peaceful and inclusive societies for sustainable development,provide access to justic

71、e for all,and build effective,accountable,and inclusive institutions at all levels2024 Sustainability Review:Who We Are page 34;Supporting Our Communities pages 43-45;Governance pages 61-62PARTNERSHIPS FOR THE GOALSStrengthen the means of implementation and revitalize the Global Partnership for Sust

72、ainable Development2024 Sustainability Review:Sustainability at The Andersons Biodiversity pages 22-25;Fostering a Safety Culture Sustainable Supply Chain page 54-55The Andersons aims to align with The United Nations Sustainable Development Goals(SDGs)which were adopted by all United Nations Member

73、States in 2015.These goals were established to end poverty and inequality,protect the planet,and ensure all people enjoy health,justice,and prosperity.We have aligned our activities with those we believe have the strongest impact in making our world more sustainable.2024 Sustainability Review:Growin

74、g as a Community-pages 35-38SUSTAINABILITY AT THE ANDERSONSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA16OUR STRATEGY TO BUILDING A MORE SUSTAINABLE COMPANYSustainable agriculture

75、 is the core of our business and our vision“To be the most nimble and innovative North American ag supply chain company.”That means always looking for new,outside-the-box solutions.Its keeping an open mind when faced with difficulty and turning a challenge into an opportunity for growth.Its using cr

76、eativity to be more efficient at delivering food,feed,and fuel.Our vision enables us to not only address the needs of today,but also to meet future challenges.Our sustainability strategy is focused on aligning our ESG actions with the leading ESG standards and frameworks and developing a disclosure

77、strategy that meets the needs of our stakeholders.We look to:Demonstrate ESG leadership,where meaningful to our business and stakeholdersDrive operational efficiency and process improvement Deliver on investor,customer,employee,and other stakeholder expectations for a sustainable future Develop new

78、market opportunities We want to ensure our strategy and ESG disclosure process:Is reflective of corporate culture and vision Aligns with reporting best practices Is focused on both ESG risks and opportunities What should we report?What data do we already collect?What areas can weadvance?MATERIALITY

79、ASSESSMENT What targets areappropriate?What additional datawill we need?REPORTINGImplement stakeholder engagement mechanismsMeasure and monitor performanceDevelop business integration proceduresIMPROVEMENTWhat are we already doing and how do we compare?BENCHMARKINGSUCCESS FACTORS Support of top mana

80、gement and led by cross-functional team Integrated into the business strategy Includes critical few Key Performance Indicators(KPI)with set targets to monitor progress Recognized as a dynamic and iterative processSUSTAINABILITY AT THE ANDERSONSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVI

81、RONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA17PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESOur Approach to Environmental ActionBiodiversityBiodiversity through EnvironmentaIInn

82、ovationBiodiversity through a Sustainable Supply ChainSustainable Water PracticesFocusing on Climate ChangeReducing Our Waste ImpactMeasuring Our Environmental Performance1819212526272930SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERIN

83、G A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA18OUR APPROACH TO ENVIRONMENTAL ACTIONPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESClimate action and our approach to decarbonization remain an integral part of our strategy.In 2023,we worked with third-party vendors to understand and collec

84、t data on our carbon footprint.We also continued to analyze our Scope 1,Scope 2,and Scope 3 data as an active participant in the Supplier Leadership on Climate Transition(Supplier LOCT).Through this program,we gain knowledge and guidance on data gathering and making calculations that align with the

85、Science Based Target initiative(SBTi)methodology.This includes the newly developed Forest,Land and Agriculture(FLAG)guidance for land intensive sectors to set emission reductions and removals.In 2024,The Andersons submitted an SBTi Commitment Letter as we continue to finalize our Scope 1 data and be

86、gin setting sustainability reduction goals.This commitment further enhances our fight to reduce emissions within our operations by making carbon-focused decisions across the company.Our approach to carbon reduction can be achieved by looking at innovative ways for low-carbon alternatives and reducti

87、on strategies.Current and potential projects include:Reforestation Regenerative Ag collaboration with local farmers LED Lighting replacement Steam Turbine LEED Certifications Renewable Energy We believe that by focusing our efforts on building pathways to carbon reduction,we open new opportunities w

88、ith our stakeholders,creating a more sustainable future for our company.Supplier LOCT is a collaboration of global companies working together to address the one common concern of lowering Scope 3 GHG emissions.SupplierLOCT.comSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND

89、PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA19BIODIVERSITYPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESBiodiversity is critical for human well-being as it supports all life on Earth.As a leading agriculture company,we believe that protecting the

90、planet and its ecosystem is essential to ensuring future generations can enjoy the world in the same way we do today.Our policies,commitments,and practices are designed to delicately balance our interactions within natural habitats.For example,our Deforestation Statement focuses on the stewardship o

91、f forests and natural resources,including responsible use of water and biodiversity through sustainable land use.WILDLIFE HABITAT COUNCIL The Andersons headquarters in Maumee,Ohio,is located on a 55-acre campus which is home to many plant,animal,and wildlife species native to the region.To promote b

92、iodiversity and natural habitats,we have established a wildlife habitat committee focused on pursuing certification through the Wildlife Habitat Council.This non-profit conservation organization helps to preserve and enhance biodiversity on corporate lands.By documenting the propertys biodiversity,p

93、romoting awareness through educational seminars,and planting native species,The Andersons is laying the groundwork for building sustainable ecosystems.PARTNERS FOR CLEAN STREAMSClean water is integral to all ecosystems,and we believe that access to clean water is a fundamental human right as outline

94、d by the United Nations SDGs.Pollution,muddy water,and trash can threaten critical water ways in our communities,impacting peoples health,community traditions,and the local economy.To support clean waterways in Northwest Ohio,more than 40 volunteers of all ages from The Andersons worked with Partner

95、s for Clean Streams to remove 14,957 pounds of marine debris from rivers and streams along the Maumee River.The debris is recorded and shared with the Ocean Conservancy for inclusion in International Coastal Cleanup records.The Maumee River watershed is the largest drainage basin in the Great Lakes

96、Watershed covering 6,500 square miles(4.2 million acres).The Andersons received the River Partner Certification in recognition of having more than 40 volunteers participate in Clean Streams.Howard Marsh in Curtice,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESG

97、ROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA204R NUTRIENT STEWARDSHIPThe Andersons is proud to continue supporting the work of The Fertilizer Institutes 4R Nutrient Stewardship Program.Developed in the Western Lake Erie Basin home to The Andersons headquarters th

98、is internationally adopted program helps to improve water quality and sustainable agricultural practices through the adoption of a fertilizer application framework.The framework reduces nutrient runoff into water systems by matching fertilizer types to the individual crop needs(Right Source),providi

99、ng guidance on the amount of fertilizer needed(Right Rate),making sure the nutrients are available when the crop needs them(Right Time),and keeping those nutrients embedded in the soil to ensure crops have full utilization and potential(Right Place).Since its inception in 2014,there are 2.5 million

100、acres covered by 4R certified nutrient service providers with approximately 5,000 growers served by 4R.This equates to 16%less phosphorus applied to Ohio fields from the 20-year baseline and an average of 7 pounds of phosphorus removed annually.BIODIVERSITYPUSHING FORWARD WITH ENVIRONMENTALLY SOUND

101、PRACTICESThe Andersons currently has five 4R-certified retail farm centers:Fremont,Ohio Fostoria,Ohio Gibsonburg,Ohio Litchfield,Michigan Waterloo,IndianaWalton,INSOURCERATETIMEPLACESUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A S

102、AFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA21PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESBIODIVERSITY THROUGH ENVIRONMENTAL INNOVATIONSUSTAINABILITY AND ENVIRONMENTAL INNOVATION(SEI)The Andersons seeks to link our customers with sustainability projects and products.We are growing our por

103、tfolio of innovative projects,services,and products by helping our customers answer the following questions:Where do your ingredients come from?(Traceability)Do your ingredients advance your climate goals?(Regenerative Ag)Do your ingredients consider the entire supply chain?(Sustainable Sourcing)Are

104、 your sourcing metrics quantified/qualified by national and internationally recognized platforms,methods,and Measurement Reporting and Verification Partners?(Sustainability Platforms)How can The Andersons help you with your climate goals?(Consultation)Do your suppliers share their energy and GHG emi

105、ssions footprint and other ESG-related metrics?(Transparency)We have projects underway or in the planning stages linking on-farm carbon insetting with the crop products that our customers source from us for use in food manufacturing.Farmers win through the adoption of incentivized regenerative farmi

106、ng practices and the customer gets to lower their Scope 3 carbon footprint.This also allows our customers to meet their sustainability objectives and advance climate action through their supply chains.EMISSIONS REDUCTION THROUGH SWITCHGRASS In 2023,we initiated a pilot project in our Specialty Liqui

107、ds business to take stormwater that contains nutrients with agronomical value and re-use it on-site to recover these nutrients.Nearly 10 acres of switchgrass were planted on company farmland to recover nutrients through an irrigation system.Switchgrass(Panicum Virgatum)is a warm-season perennial gra

108、ss that can capture carbon dioxide from the atmosphere during its growth and store it in plant biomass and the soil.This small innovative process can sequester up to 25 tons of CO2 annually and is being explored for other sites within the company.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH E

109、NVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA22The Andersons offers fertilizers that are focused on maximizing water use and nutrient efficiency.REJUVASOIL Designed to improve degraded or compromised soils,this all-natural soil enhan

110、cer contains Humic DG,BioChar DG,beneficial microbes,and corn distillates,a byproduct of the distillation process.This combination increases soil microbial populations,adds organic matter back to soil,and improves nutrient efficiency,all resulting in better water holding capacity and improved turfgr

111、ass color.FERTILIZER+HYDRA CHARGE This innovative fertilizer product combines biosolids,a nutrient source created through the treatment of domestic wastewater,with a proprietary blend of surfactants designed to improve soil water movement and nutrient efficiency.Homogenous granules of both slow and

112、fast-release nitrogen are impregnated with these surfactants to help prevent occurrence of localized dry spots and sustain turfgrass performance through periods of water stress.BIODIVERSITY THROUGH ENVIRONMENTAL INNOVATIONHOW DOES IT WORK?SURFACTANT 1Block copolymer surfactant that overcomes soil hy

113、drophobicity by reducing water surface tension,allowing water to spread and infiltrate more uniformly across the soil profile.SURFACTANT 2Long chain polymer surfactant that forms a film around soil particles to help keep water where it is available for the plant to use by connecting small and large

114、sized soil pores,reducing water loss to preferential flow.IMPROVED NUTRIENT EFFICIENCYHydra Charge also works to enhance the distribution of nutrients delivered with or soon after the application of the product,with the improved water movement throughout the soil assisting in the movement of nutrien

115、ts.Water entering soil without Hydra Charge(left)follows preferential flow,quickly making its way through large,established pores in the soil while not providing moisture across the soil profile.With Hydra Charge(right),water droplets are flattened across the soil surface,small and large soil pores

116、are connected,and moisture is provided throughout the soil profile.WITHOUT HYDRA CHARGEPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESWITHHYDRA CHARGELAND AND FERTILIZERSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY C

117、ULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA23BIODIVERSITY THROUGH ENVIRONMENTAL INNOVATIONREDUCING AGRICULTURAL PHOSPHORUS RUNOFF The Andersons Smartphos DG technology pairs a renewable and plant-available phosphorus source,struvite,with The Andersons Dispersing Granule(DG)technology.The Ohio State Uni

118、versity conducted leaching studies which showed SmartPhos DG released up to 40 times slower than traditional forms of phosphate fertilizer,allowing for a slow and steady supply of nutrients to crops while limiting its movement into water ways.This innovative technology was awarded$850,000 in researc

119、h funding from the U.S.EPAs Great Lakes Restoration Initiative grant through an assistance agreement with the Ohio EPA as part of Ohios H2Ohio Technology Assessment Program.The research will be conducted by The Ohio State University over a four-year period which started in 2023.The study will monito

120、r yield impacts at two locations and measure phosphorous water impacts utilizing a specialized field in Defiance,Ohio,to compare against conventional forms of phosphate fertilizers.In connection with this study,The Andersons will make in-kind annual donations to the project,as well as a$60,000 match

121、 to upgrade the Defiance Agricultural Research Association property where some of the testing will take place.ABOUT H2OHIO H2Ohio is a comprehensive water quality initiative focused on improving biodiversity in Ohios waterways while addressing serious water-related issues impacting the region.H2Ohio

122、 partners with several government agencies in Ohio,including the Department of Agriculture,Department of Natural Resources,EPA,and the Ohio Lake Erie Commission.The Andersons Smartphos DG technology participation aligns with the programs methodology to implement strategies that are long-term,sustain

123、able,science-based,and cost-effective.More than 1.4 million acres of farmland in the Western Lake Erie Basin are enrolled in H2Ohio and follow a Voluntary Nutrient Management Plan.That is a total of 2,400 producers implementing best management practices proven to improve water quality and reduce the

124、 runoff from commercial fertilizers,which helps to prevent harmful algal blooms.David Meyerholtz,a farmer from Gibsonburg,Ohio,and Dr.Vinayak Shedakar the research project lead collaborate on fertilizer research at The Ohio State University.PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGrand R

125、apids,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA24PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESBIODIVERSITY THROUGH ENVIRONMENTAL INNOVATION At The Andersons,we pride o

126、urselves on accelerating growth by investing in sustainable opportunities and companies that meet the future needs of the agricultural industry through our venture capital arm,Maumee Ventures.These investments focus on commercializing simple-to-use ag innovations that are addressing plant nutrients,

127、crop protection,grain supply chain,food safety,and field tracing,to name a few.PHOSPHOLUTIONSFounded in 2016,Phospholutions promotes sustainable production through the use of phosphorus,the second largest nutrient used in food production.The company emphasizes a more responsible use of phosphorus wi

128、th little harm to freshwater ecosystems.Their RhizoSorb product addresses key agronomic challenges,increases efficiency,and improves economics for farmers all over the world.To learn more visit .3BAR BIOLOGICS3Bar Bio designs,develops,and delivers viable microbes for the ag markets using its proprie

129、tary manufacturing,packaging,and supply chain processes.By accelerating the speed to commercialization,providing innovative in-package fermentation,and maximizing the microbes shelf live,they enable their customers to give farmers confidence in improved field performance,faster fermentation,and redu

130、ced waste andproduct loss.To learn more visit .Source:3BarBioSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA25The Andersons is forging new relationships with farmers and customers.We

131、 have entered multi-year commitments with end-users to confirm their ingredients and feedstocks are delivered under appropriate sustainability platforms and protocols.We are developing customized sourcing solutions that focus on regenerative ag practices,the use of internationally recognized sustain

132、ability platforms,and help our customers reduce their Scope 3 GHG impact to meet their sustainable sourcing goals.Many of our programs support the farmer by contributing additional payments for the adoption of regenerative farming practices.SUSTAINABLE SOURCING PLATFORMSOur programs,projects,and cus

133、tomer collaboration include commodities such as corn,wheat,beans,and more,covering the equivalent to more than 32 million commodity bushels in the U.S.and Canada.To meet our customers needs,we remain members of Field-to-Market,and use the Sustainable Agricultural Initiative(SAI)to develop sustainabl

134、e sourcing programs and projects.The SAI platform is growing in demand among our customers.We have also developed relationships with partners capable of supporting the measurement,reporting,and verification pieces of custom project components to help us meet the needs of our customers.RESPONSIBLEAGW

135、e continue to support the ResponsibleAg certification platform.This industry-led initiative helps agribusinesses properly store and handle farm supplies,ensuring compliance with Environmental,Health,and Safety(EHS)regulations.The Andersons has nine sites that have gone through the audit process,have

136、 an employee serving as a board member,and have trained in-house auditors to support this initiative.BIODIVERSITY THROUGH SUSTAINABLE SUPPLY CHAIN PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMU

137、NITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA26SUSTAINABLE WATER PRACTICESPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESThe Andersons believes having access to clean water is a fundamental right and understands the importance of ensuring our operations do not impede access.W

138、e are committed to addressing water-related issues that impact the environment in our local communities.In 2023,The Andersons developed the goal of conducting a water risk assessment.We expect to work with a third party to determine a basis for a water goal,review the assessment to determine opportu

139、nities for improvements,and cascade best practices where we are able.A substantial amount of our water usage can be traced to our ethanol and liquid fertilizer production facilities.It is used for steam production,cooling,and process operations like wet gas scrubbers for environmental compliance.The

140、 continued practice of recycling water back into the process minimizes wastewater generation.We focus on wastewater reuse.Some facilities have the capability to capture storm water for process utilization.The volume of water use shown here is our best corporate-wide estimation as we use both public-

141、service provided water and well water.The 2021 and 2022 data represent public-service provided water and well water(ethanol only).The 2023 data includes data from public-service provided water and well water from ethanol and some Nutrient&Industrial facilities.We also calculated a well-water estimat

142、ion from pounds of product produced from two Trade facilities and at 43 Nutrient&Industrial locations,an estimation was made based on employee headcount.This estimation was based off EPA guidance from the“Lean and Water”toolkit Appendix C of the U.S.EPA website.We are still processing all other well

143、-water usage and our numbers may increase annually as the data is refined.Water usage decreased in part due to exiting from ELEMENT,an ethanol plant in Colwich,Kansas.8,000,0006,000,0004,000,0002,000,0000CUBIC METERSWATER USE202120226,877,0506,241,22820235,902,001Within the Specialty Liquids busines

144、s,new and innovative fertilizers are being tested to create less runoff into waterways and promote a healthier ecosystem.One fertilizer has won the approval of the EPA and is currently being tested as part of a federal grant.Our recently embedded ESG software allows us to map our process operations

145、against the World Resource Institute water stressed map.Our four ethanol facilities,which account for approximately 80%of the total water usage,do not operate in water stressed areas.Less than 1%of our facilities using process water are located in a water stressed area.We expect to utilize our softw

146、are when looking at future acquisitions to continue our commitment to water quality.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA27FOCUSING ON CLIMATE CHANGEPUSHING FORWARD WITH EN

147、VIRONMENTALLY SOUND PRACTICESWe are committed to lowering our carbon footprint by reducing our energy use,improving the efficiency of our facilities,optimizing the transportation of goods,conserving raw materials and natural resources,and supporting growers with emission reduction solutions.ENERGY A

148、ND EMISSIONS-SCOPE 1 AND SCOPE 2Obtaining accurate and complete data is essential to setting a baseline as we continue our path toward science-based emission reduction targets.In 2023,we continued to make progress toward gathering our GHG emissions data.For Scope 1,we are still finalizing data relat

149、ed to our fleet,which we expect to have completed by the end of 2024.For Scope 2,the data we collected for 2023 is more than 95%complete which reflects a 64%improvement over 2022 data collection.In 2024,we submitted and received approval for our SBTi commitment letter,and our near-term reduction tar

150、gets are in alignment with their methodology,including the newly published FLAG requirements.Participating in the Supplier LOCT has guided our approach and assisted us in understanding our true carbon footprint,while providing continuing education on reduction and abatement strategies.We were awarde

151、d two badges by Supplier LOCT for the successful completion of our Scope 1 and 2,as well as Scope 3 footprint.Both badges represent our efforts in calculating the companys total carbon footprint as we plan to set Scope 1 and 2 reduction goals based on a 2024 baseline.ENERGY CONSERVATION Electricity

152、reduction efforts continue throughout our facilities.Plants have started converting lighting to energy efficient LEDs.In 2023,270 lights were exchanged resulting in a reduction in electrical consumption of more than 30,000 Kwh.GHG ETHANOL In 2023,the ethanol plants continued to capture and sell a po

153、rtion of the biogenic CO2 formed in the fermentation process for use in dry ice production.For the year,about 16%of the produced biogenic CO2 was sold for dry ice production.The Andersons continues to explore projects for carbon capture and sequestration for the biogenic CO2 in ethanol production.SC

154、OPE 1600,000400,000300,000200,000100,0000METRIC TONS20212022 SCOPE 2The above figures are our best estimate for for the years represented.They inlcude 95%offacility natural gas and propane consumption.These do not include fleet data.Decrease attributable to exit from ethanol facility in 2023.Data in

155、cludes only the first two and half months of emissions from this site.Purchased power from fossil fuels.Our renewable-hydro power has been excludedfrom this graph.Decrease attributable to exit from ethanol facility in 2023.Data includes only the first two and half months of emissions from this site.

156、200,000150,000100,00050,0000METRIC TONS531,33320212022160,322162,607500,0002023143,5362023ENERGY USE202120151050ENERGY USE(IN MILLIONS OF GIGAJOULES)This is our best corporate-wide estimation as we refine our usage.15.2202217.115.92023536,608498,389SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH

157、 ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA28GREENVILLE STEAM GENERATIONOur Greenville,Ohio,ethanol facility installed a steam turbine in 2023.The plant produces high-pressure steam as a heat source for plant operations.Once the

158、high-pressure steam passes through the steam letdown turbine,the exhaust steam,now low pressure,is used as a heat source by sending power to the plant.The turbine,on average,produces 2.2 Megawatts per hour when in use.The system helps to reduce up to one-third of the plants energy needs,lowering the

159、 facilitys carbon footprint.CARBON CAPTURING AND SEQUESTERINGThe Andersons is exploring opportunities to remove carbon from the atmosphere by land management projects and carbon sequestration.We are partnering with other entities to explore geological storage where CO2 is injected into deep rock for

160、mations where it is safely stored,or promoting improved forest management practices by converting previously logged forests to protected forest.Innovative ideas and practices are just one of the ways The Andersons is looking to advance in the carbon removal process.SUPPLY CHAINThe Andersons succeeds

161、 when farmers and the ag supply chain succeed.We are committed to reducing GHG emissions across our supply chain by supporting our growers with emission reduction education and solutions.This is,in part,what SEI is about-linking commercial sourcing success from farmer to end-user in a mutually benef

162、icial way.Whether by an independent project with our growers or through a Climate-Smart Grant provided by the USDA,The Andersons and our growers are proud to support and invest in a sustainable future.Other ways we address the supply chain include working with our customers to incentivize farmers to

163、 initiate or continue adopting regenerative ag practices through a direct per acre incentive.This innovative land use has less impact on the soil and promotes biodiversity.FOCUSING ON CLIMATE CHANGEPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESUNDERSTANDING SCOPE 3 IMPACTWithin the agricultura

164、l industry,gathering a true understanding of a companys Scope 3 impact can be difficult.Last year,we contracted a third-party consultant to assist in that effort.We are still in the process of gathering information to work towards a baseline.We continue to track and communicate our business travel b

165、y utilizing our third-party travel provider to provide the data based off of annual spend.This data is available in the performance table at the end of this review.In 2023,we saw an increase as our available data expanded to include hotel and rental car emissions.The Andersons continues to work with

166、 our growers and suppliers to focus on water quality efforts and soil health to promote a more sustainable process in reducing our Scope 3 impact.Greenville,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCE

167、GLOSSARYPERFORMANCE DATA29The Andersons waste minimization program aims to lower the environmental impact and minimize the waste generated from the companys products through responsible management practices,including education and operational oversight.Our overall waste generation,including hazardou

168、s waste,remains low when compared to other Fortune 500 companies.Our hazardous waste saw a 73%reduction from 2022 to 2023.This was mainly due to waste reduction efforts at our Maumee,Ohio,Large Pack facility which recently completed a multi-year project to restructure its inventory,increase blend-of

169、f materials being consumed,and reduce obsolete chemical inventory in prior years.Our non-hazardous waste to disposal increased mainly due to a large construction project which compromised product at one of our grain facilities,resulting in that product being sent for disposal.Our biggest operational

170、 facilities reside within our ethanol production sites.These facilities use corn as the main raw material.During the process,the entire corn kernel is utilized to produce ethanol(renewable fuel),distillers dried grain(animal feed),corn oil(animal feed and low-carbon feedstock)and CO2(to be used in s

171、oft drinks).The remaining waste from the feedstock is limited to a small number of cobs and husks.We are currently conducting a waste analysis for all operation locations to determine which facilities have access to a waste reduction process and adequate recycling services.The analysis will outline

172、opportunities for waste reduction improvement at each site in order to help us meet our corporate waste reduction goal.By 2030,we are targeting to have a standardized program with at least one waste reduction option being carried out at each facility.PUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTI

173、CESREDUCING OUR WASTE IMPACTClymers,INGreenville,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA30MEASURING OUR ENVIRONMENTAL PERFORMANCEPUSHING FORWARD WITH ENVIRONMENTALLY SOUND

174、PRACTICESThe Andersons acknowledges and accepts our responsibility to respect the local,regional,and national environmental laws and regulations established to preserve the natural environment.We are committed to compliance with permits and licenses issued to our facilities.MEASURABLE IMPROVEMENTWe

175、continue to measure environmental compliance performance by using the ERIR metric.Implemented in 2020,this metric is a score card for our business to measure environmental performance by weighing serious pollution events,of which our goal is always zero,regulatory reportable events/excursions from p

176、ermit requirements,and formal notices of non-compliance from regulatory agencies over hours worked.In an effort to continually improve,each business reviews their previous years performance and sets goals for the upcoming year.During last years review,the need for further training of our EHS and ope

177、rations employees on the environmental regulatory requirements was identified and in 2023 we hosted our first ever Environmental Bootcamp.This two-day event was held at our headquarters in Maumee,Ohio,where attendees had a chance to learn from both internal and external subject matter experts on var

178、ious topics,including permitting,reporting,and emergency response.The group also had a chance to share experiences and network across our businesses.POLLUTION EVENTS:serious environmental impact requiring a response and corrective action or monitoring NOVs:Notice of Violation REPORTABLE EVENTS:admin

179、istrative in nature;permit exceedances,minor/negligible impact to the environment,no response needed except making notification to agency(Pollution Events*2+NOVs+Reportable Events*0.5)*200,000Man Hours WorkedERIR=1.00.80.60.40.20ERIR2021ENVIRONMENTAL METRICS202220230.830.690.60SUSTAINABILITY AT THE

180、ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA31GROWING AS A COMMUNITY2023 interns volunteering at Toledo GROWSGROWING ASA COMMUNITY32353940Who We Are Talent DevelopmentPerformance ManagementEmployee Ben

181、efitsEmployee Engagement SurveysHealth and WellnessSupporting Our CommunitiesSupporting AgricultureAwards,Certifications,and Recognition4142434546SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFO

182、RMANCE DATA32WHO WE ARE-2023 WORKFORCE METRICSGROWING AS A COMMUNITYTOTAL WORKFORCEIncludes all employee types(including international)except temporaryRACIAL/ETHNIC MINORITY GROUPS3%FEMALEGENERATIONS1%12%16%31%40%1%MillennialBaby BoomersGeneration XGeneration ZNot Identified-1%Silent Generation-1%No

183、t IdentifiedSENIOR LEADERSHIPRACIAL/ETHNIC MINORITY GROUPSFEMALE.80%GENERATIONSMillennialBaby BoomersGeneration XSilent Generation-1%1%15%56%28%Not IdentifiedNot IdentifiedNot Identified5%27%FEMALE72%MALE82%15%1%1%19%31%40%3%6%THE ANDERSONS NEW HIRE ORIENTATIONThe Andersons New Hire Orientation serv

184、es as a comprehensive introduction to the company by anchoring new employees to our core values in the Statement of Principles.It provides an overview of the business by offering insights into the diverse markets we serve,and introducing employees to our benefits,tools,and resources to help them suc

185、ceed.It also fosters cross-departmental connections,helping to cultivate a sense of belonging,appreciation,and value from day one,enhancing the overall employee experience GROWING AS A COMMUNITYTALENT DEVELOPMENTMERCHANDISER IN TRAINING(MIT)PROGRAMThis one-year rotational program teaches new profess

186、ionals the fundamentals of the commodity merchandising business.Participants are mentored by an experienced merchandising manager and learn how to buy and sell physical commodities,analyze the daily market,and develop prices.Trainees receive the opportunity to learn from multiple areas within the tr

187、ading business,giving them a well-rounded perspective on the markets and our business.Upon completion,successful individuals may be placed in merchant roles within the company based on business needs and individual performance.Not only do MITs get exposure to a wide array of profit centers,but they

188、also can ask questions of every person on the trade floor from the accountant,to credit,to logistics,or even COO,Bill Krueger.Kate Thompson Trainee,Merchandising(2023)190 CONTINUING PROFESSIONAL EDUCATION COURSES COMPLETED5%RACIAL/ETHNIC MINORITY GROUPSNot Identified28%RACIAL/ETHNICMINORITY67%NON-RA

189、CIAL/ETHNIC MINORITY3%FEMALENot Identified25%FEMALE72%MALESUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA36GROWING AS A COMMUNITYEMPLOYEE DEVELOPMENTFOUNDATIONS OF LEADERSHIPThe Foun

190、dations of Leadership program at The Andersons is designed to equip new leaders with essential managerial and leadership skills.This comprehensive training course prepares leaders to guide their teams effectively.The two-and-a-half day in-person course covers critical topics,including company goals

191、and objectives,key business functions,and essential company processes.Additionally,the program promotes collaboration,networking,and the sharing of best practices among peers and leaders,fostering a culture of continuous improvement.In 2023,we added unconscious bias training as a part of the program

192、.EMPLOYEE REFERRAL PROGRAM The Employee Referral Program is an essential part of our talent acquisition strategy.By leveraging the networks of our employees we shorten the time to fill roles and generally see improved retention rates.To encourageparticipation,we offer a referral bonus award to botht

193、he referring employee and the new hire.This reward isstructured to provide immediate and long-term incentives,ensuring that the new hire remains with the company for anextended period.ONSITE MBA PROGRAM PARTNERSHIP The Andersons partnered with a local university to launch an onsite MBA program,furth

194、ering our commitment to employee development and education.This innovative program offered a cohort of nine employees the opportunity to advance their business acumen and leadership skills while balancing their professional responsibilities.This initiative highlights our dedication to investing in o

195、ur employees and fostering long-term organizational development.17,428total training hourscompleted in 2023across all programs and platforms1,500 HOURS OF LIVE TECHNICAL TRAINING IN 202360 HOURS IN INFORMATION TECHNOLOGY BOOTCAMPS 92%favorable rating across all trainings7,500 HOURS OF ELECTIVE TRAIN

196、ING COMPLETEDWe held four Foundations of Leadership courses in 2023 with 80+in attendance185 CANDIDATES HIRED BY REFERRAL IN 2023NEW TECHNICAL TRAINING FOR 2023 In 2023,we enhanced our technical training offerings with a comprehensive series of live courses designed to improve operational safety and

197、 efficiency while upskilling and re-skilling our workforce.These new trainings emphasized hands-on learning and practical application of advanced techniques.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGL

198、OSSARYPERFORMANCE DATA37GROWING AS A COMMUNITYEARLY CAREER RECRUITINGCOMMODITY MERCHANDISING INTERN EXPERIENCEThe Commodity Merchandising Internship Experience is a strategic initiative to build our early career pipeline for our MIT program.This experience is a 12-week,immersive program focused on p

199、roviding a broad,hands-on experience that:Teaches the history and role of The Andersons in theNorth American agricultural supply chain.Promotes a fundamental understanding of local,national,and global cash grain and grain productmarketing,trading,and flows.Develops merchandising skills to provide ac

200、omprehensive base knowledge for futuremerchandising career opportunities.Through the collaborative efforts of managers,profit centers,the Early Career Committee,and the company-wide Internship Experience Committee,they receive comprehensivelearning and development.83recruiting events in 2023CAMPUS P

201、ARTNERSHIPIn the ever-evolving landscape of talent acquisition,maintaining a competitive edge is crucial.One of the most effective strategies to build a steady pipeline of fresh,innovative,and diverse talent is through establishing strong campus partnerships.Benefits of Campus Partnerships include:A

202、ccess to Emerging TalentDiverse Talent PoolEnhanced Employer BrandLong-Term RelationshipsEstablishing campus partnerships is a strategic move that yields significant long-term benefits for our organization.By investing in these relationships we can have continuous access to fresh talent,foster diver

203、sity,enhance our employer brand,and contribute to the development of future industry leaders.Attended 29university and community college career eventsSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYP

204、ERFORMANCE DATA38INTERN EXPERIENCEGROWING AS A COMMUNITYINTERN EXPERIENCEThe Andersons Internship Experience(May through August)provides college students and recent graduates the opportunity to build professional relationships,receive on the job experience and guidance on career goals,access to ment

205、orships,and at times,the potential to transition to a full-time position.The program features professional,social,and community events in addition to intern responsibilities.Interns have the opportunity to complete challenging yet realistic work deliverables while developing core competencies needed

206、 for their future career success.60%50%40%30%20%0CONVERSION RATECONVERSION RATE2021202210%INTERNS HIRED/YEAR55%55%222750%202330The Andersons Internship Experience was one to remember!During the summer,I was exposed to the vast commodities markets while taking part in an incredible company culture at

207、 The Andersons.This has helped expand my horizons and develop a better understanding of the agriculture industry.Joseph BrownTrainee,Merchandising(2023)Maumee,OHMaumee,OHMaumee,OHToledo,OHToledo,OHToledo,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS

208、A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA39PERFORMANCE MANAGEMENTGROWING AS A COMMUNITYPLANNINGMONITORINGDEVELOPINGRATING1,922 EMPLOYEES(97.3%)SUCCESSFULLY COMPLETED PERFORMANCE REVIEWS(including those who were on leave)PERFORMANCE MANAGEMENTAt The Andersons,its importa

209、nt for us to create an environment where our employees can perform to the best of their ability,giving them the opportunity to work efficiently while producing the highest quality work.We believe that performance conversations throughout the year are crucial to a sustainable and successful future.Ou

210、r performance management process enables employees to be an advocate for themselves and have healthy discussions with their managers about their performance,development,and future goals.The process aligns with our Statement of Principles where we are committed to ensuring our employees know the expe

211、ctations for their job and how they are performing in their position.REWARDINGMaumee,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA40COMPENSATION AND BENEFITSThe Andersons is comm

212、itted to maintaining fair and competitive compensation and benefit programs,which show a proper concern for internal relationships and external market factors.Pay for company performance and an opportunity for participation in company ownership have been a tradition and remain important,as well as h

213、elp build a stronger,more successful organization.During our compensation process,employees are eligible to participate in a company bonus program and a merit review annually.During 2023,we focused on our Retirement Investment Savings Program(RSIP).We rolled out the Roth In-Plan Conversion program t

214、o allow employees to move eligible pre-tax money into a designated Roth account within the 401(k)plan.This program provides additional savings flexibility,the ability to grow tax-free earnings on savings,and assistance in reducing future income taxes.We streamlined processes for loan and hardship wi

215、thdrawals by implementing a minimum limit on money taken for hardships and a waiting period between loan payoff and a new loan starting.We conducted focused training on our retirement programs,providing education on how our retirement plans work,how employees can contribute and invest their money,ma

216、ximize the match,and utilize the tools and resources available to them through our program.The Andersons retirement program also includes an Annual Performance Contribution which is a discretionary contribution directly deposited into participant accounts based on the companys pre-tax income as comp

217、ared to the budget for the plan year.In 2023,The Andersons separated pharmacy benefits from the medical insurance.This allowed for a broader network of pharmacies,deeper discounts,and robust cost savings for both the employee and the company.Access to better tools,resources and service provided to e

218、mployees creates a better employee experience.Our benefits team continued the Benefits Education Series that began in the prior year.The series focused on selected topics that were either common interest,topics that tie directly to benefits,or needed attention based on common employee questions.EMPL

219、OYEE BENEFITSGROWING AS A COMMUNITYEMPLOYEE REFERRAL PROGRAMHEALTHY LIFESTYLES PROGRAMANNUAL PERFORMANCE CONTRIBUTIONS401K MATCH PROGRAMPAID PARENTAL LEAVENEW YEAR BENEFITS CHECKLIST401K PRE-TAX,ROTH IN-PLAN CONVERSION BENEFIT ROLLOUTLEAVE PROCESSMENTAL HEALTH AWARENESS/RESOURCESANCILLARY BENEFITSHS

220、ACARE.COMHEALTHCARE OPTIONS(NO WAITING PERIOD)EMPLOYEE ASSISTANCE PROGRAMEDUCATION ASSISTANCEDISABILITY INSURANCEVACATIONADOPTION MEDICAL COVERAGEEMPLOYEE SHARE PURCHASE PROGRAMRELOCATION PACKAGES5%DISCRETIONARY PERFORMANCE CONTRIBUTION MADE TO ELIGIBLE PARTICIPANTS IN 2023SUSTAINABILITY AT THE ANDE

221、RSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA41Engaged employees are essential for fostering a productive,innovative,and positive workplace culture.Understanding the needs and perspectives of our employees

222、helps us tailor initiatives that enhance their work experiences,build trust,empower managers to address specific issues,and promote a culture of transparency and continuous improvement.Employee engagement surveys give employees a confidential way to share their feedback and establish two-way communi

223、cation with a direct voice to management.We ask all full-and part-time employees to participate in the surveys.The survey measures employee engagement levels across the company and allows us to identify where we may need improvement or action.It allows us to evaluate employee engagement,management a

224、nd leadership effectiveness,and the overall working environment.In March 2024,we launched our first engagement pulse survey,which will be alternated each year with a full engagement survey,giving us relevant,trackable,real-time data on our progress over time.This process will give us the ability to

225、address concerns more quickly and continue our momentum.Employee participation reached 98%in 2023,a best-in-class response rate according to our third-party partner Culture Amp.EMPLOYEE ENGAGEMENT SURVEYSGROWING AS A COMMUNITY98%participation rate8%higher than allindustry benchmarksin 2023 for:Manag

226、ers and Supervisors demonstrate theircommitment to safety and health by example.*17%improvement from 2021 for:Leaders within my business unit demonstrate that people are important to the companys success.*Data provided by Culture AmpALIGNMENT&INVOLVEMENT AND SAFETY SCORED AS TWO HIGHEST FACTORS72 FE

227、EDBACK SURVEYS CREATED WITHINCULTURE AMP IN 202371%FAVORABLE RATING UP FROM 64%IN 2021Overland Park,KSSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA42Throughout 2023,the Healthy Lif

228、estyles program continued to focus on the wellbeing of its employees and their families.During 2023,82%of the companys eligible population participated in some aspect of the Healthy Lifestyle program.In addition to free health screenings,employees were given the opportunity to receive coaching,parti

229、cipate in webinars,company-wide step challenges,and condition specific counseling.Our live webinar offerings spanned all aspects of wellbeing and included:sleep,stress,caring for family,creating balance,as well as financial wellness.We combined physical activity with the benefits of social engagemen

230、t through competition by offering three challenges for U.S.employees and their eligible spouses.Challenges included Habit Stacking,which focused on building healthy habits and What Makes Cents,which focused on financial wellness and the popular walking challenge,which had 465 total registrations and

231、 more than 150 million steps recorded in a four-week period.HEALTH AND WELLNESSGROWING AS A COMMUNITYHEALTHY LIFESTYLESFor over two decades,The Andersons has invested in employee wellness.Healthy Lifestyles,our voluntary wellness program,is based on the principle that a healthy employee is a safer,m

232、ore productive employee both at work and at home.Participants are offered incentives to have annual preventive care visits and health screenings in addition to online health assessments and wellness workshops.All full-time employees and their eligible spouses can participate in Healthy Lifestyles pr

233、ograms,challenges,and contests.Employees who are enrolled in one of The Andersons medical benefit plans are eligible to receive discounts off their medical premiums when they or their spouse participate in wellness activities throughout the year.The Healthy Lifestyles program addresses six dimension

234、s of wellness which include:financial,emotional,occupational,physical,social,and intellectual.2023 HIGHLIGHTS Employees and spouses earned an average discount of$872 and$452 respectively.Nominated for the Bravo Winning with Wellness“Good to Great”client award for the 3rd year in a row.Enhanced resou

235、rce platform that provided access to a mobile app that included features such as,user-friendly tools to upload documents,access to articles,recipes,the ability to track physical activities,and access to individual challenges.In partnership with the ERGs,distributed Breast Cancer Awareness materials

236、and co-hosted a mental health support walk with National Alliance of Mental Health.Employees tracked a total loss of 3,604 pounds.82%OF ELIGIBLE PARTICIPANTS ENROLLED IN THE HEALTHY LIFESTYLES PROGRAM82%OF PARTICIPANTS WHO SCREENED IN PREVIOUS YEARS,MAINTAINED,OR ELIMINATED ONE OR MORE HEALTH RISKS.

237、Maumee,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA43SUPPORTING OUR COMMUNITIESGROWING AS A COMMUNITYEMPLOYEE SERVICECreating a culture of awareness and advocacy for our communi

238、ty needs has been a rich part of the companys history.Active participation in service events often leads to increased volunteerism,financial support or advocacy for the organizations providing much needed services in our communities.We are grateful for our employees who are keenly aware of the needs

239、 in their community and engage with our community giving resources to help address those needs.This year,we saw a 10%increase in the number of service hours logged by our employees.Employees continued their interest and commitment to providing care kits for a variety of needs,including veterans orga

240、nizations,new moms,and women hygiene kits for local shelters.U.S.and Canadian employees expanded the reach of our care kits as they packed backpacks for children attending schools in their local communities.The Statement of Principles serves as the foundation of who we are as a company.It challenges

241、 us to bring forth our best and motivates us to continue the legacy of service to our customers,employees,shareholders,and communities.The Andersons believes that we should generously share our time,talents,and financial resources in pursuit of solutions to our social problems and in support of othe

242、r worthwhile community endeavors.Our community support is focused in several key areas:Agriculture and EnvironmentSocial ServicesCivic and CommunityEducationArts and CultureHealth and WellnessSince 1947,we have contributed a portion of our operating income each year to community organizations.Millio

243、ns of dollars have been distributed in more than 130 communities in over 20 states.These funds come from our company and the corporate foundation,as well as from other related foundations and funds.EMPLOYEE GIVINGEach year,we encourage our employees to contribute to the charities of their choice usi

244、ng our payroll giving program or through personal donations.The Andersons pays for the costs to administer the campaign so that 100%of each employees contribution goes directly to the charities.The company also offers a gift match program that matches dollar-for-dollar up to$1,000 per calendar year

245、of contributions employees make to eligible charitable organizations.Over 95%of employees using payroll deduction used the gift match to double their donation with the contribution from the company.50%of employees contributed to 700+charitiesHensall,OntarioToledo,OHToledo,OHNorth Manchester,INMocksv

246、ille,NC7,000 total hours served$370,000+matched in 2023SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA44SUPPORTING OUR COMMUNITIESGROWING AS A COMMUNITYTHE ANDERSONS INC.CHARITABLE F

247、OUNDATIONIn 2007,The Andersons Inc.Charitable Foundation was established to continue the companys commitment to the communities where we operate.In 2023,The Andersons contributed$3 million to the corpus value of the foundation for ongoing and future giving.THE ANDERSONS EMERGENCY RELIEF FUNDThe Ande

248、rsons Employee Emergency Relief Fund was created in 2022 to help employees who need immediate financial assistance following an unforeseen disaster or personal hardship.The fund relies on support from the sponsoring organization(The Andersons Inc.Charitable Foundation)and individual donations made b

249、y the foundations partners,employees,and/or the general public.HELPING TO ADDRESS FOOD INSECURITYBeing an organization directly involved in the food supply chain,The Andersons employees continue to offer resources to minimize food insecurity issues in the communities where they operate.CONNECTING KI

250、DS TO MEALSBased in Toledo,Ohio,Connecting Kids To Meals focuses on providing nutritious meals at no cost to kids in low-income and underserved areas throughout the entire year.The Andersons teams in Toledo hosted several packing events to help create food packages for the local community.MISSION PO

251、SSIBLEFor the third year,The Andersons hosted a collaborative event between our Central Office Buildingemployees in Maumee,Ohio,and our commodity trading office in Overland Park,Kansas.In-kind andfinancial donations were made to pantries and pet shelters serving both communities,as well as atruckloa

252、d of bottled water to Cherry Street Mission located in Toledo,Ohio.HARVESTERS COMMUNITY FOOD NETWORKFor the second year,our team in Overland Park,Kansas,packed more than 1,000 meals during theAnnual Merchandiser Meeting,supporting Harvesters Community Food Network-one of the largestfood pantries in

253、Kansas,City.Overland Park,KSPainscourt,OntarioMaumee,OHMaumee,OHMontgomery,ALSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA45SUPPORTING AGRICULTURE ORGANIZATIONSGROWING AS A COMMUNI

254、TYSUPPORTING AGRICULTURE ORGANIZATIONSOn an annual basis,The Andersons supports a variety of FFA and 4-H organizations at the national,state,county,and local levels in the communities where the company has operating locations or grower customers.The Andersons and the foundation provide annual direct

255、 support to organizations that advance the agriculture industry,such as Progressive Agriculture Safety,Nutrients for Life,Illinois Agriculture in the Classroom,Theres a Pig in my Classroom,and state-level agriculture leadership institutes.The Andersons and the corporate foundation also provide capit

256、al support for a variety of agriculture and community building investments for county fairs and other community events.NUTRIENT STEWARDSHIP PROGRAM SUPPORT&SERVICEThe foundation provides program and research support to organizations advocating best practices and nutrient stewardship methodologies fo

257、r production agriculture.A few of the projects The Andersons funds annually are Heidelberg University National Center for Water Quality Research,Ohio Nature Conservancy,Soil and Water Conservation Districts in communities where the company has operations,and test plot research projects with universi

258、ties.This year,The Andersons expanded their nutrient stewardship education support to children in middle school grades by supporting Fertilizer Education,Research,and Training(FERT)boxes developed by the FERT Foundation.ONE ACRE FUNDThe Andersons support for the agriculture community reaches beyond

259、U.S.borders through its support of One Acre Fund,which operates in ten countries in Sub-Saharan Africa.One Acre Fund works with smallholder farmers to equip them with the supplies and training they need to thrive.From financing and distribution to training and market facilitation,One Acre Funds mode

260、l works to provide a complete package of resources to accelerate crop growth,business acumen,and financial support among local farmers.Fifteen years ago,Mike Anderson,The Andersons Chairman of the Board(2009-2024),initiated engagement with One Acre Fund to provide financial support to a small agricu

261、ltural nonprofit looking to make an impact in Africa.Since that time,the organization has grown to support more than five million farmers either directly or through partnerships.The Andersons contributions have directly supported more than 11,500 farmers and their families,including 46,000 children

262、as they learned to enhance the yield of their fields and manage their farm to improve their livelihoods over the long-term.THE ANDERSONS SUPPORT15+years of financial support11,500 farmers and their families,including 46,000children supportedONE ACRE FUND HELPS:Increase in farmer profits 40%Support 5

263、M+farmers directly or through partnershipsReaches 10 countries in Sub-Saharan AfricaServe 3x more female farmers than average Africanagricultural organizationsOne Acre Fund,Alice Barasa with her family,KenyaMike and Carol AndersonSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SO

264、UND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA46GROWING AS A COMMUNITYAWARDS,CERTIFICATION,AND RECOGNITIONSUPPLIER LEADERSHIP ON CLIMATE TRANSITION Signifies our development of a Scope 3 greenhouse footprint that meets GHG Protocol and Science-Based T

265、argets Initiative standards with the support of the Supplier LOCT collaborative.THE AMERICAS FASTEST GROWING COMPANIESThe Financial Times recognizes businesses based on revenue growth.SUPPLIER LEADERSHIP ON CLIMATE TRANSITION Signifies our development of a Scope 1 and 2 greenhouse gas footprint that

266、 meets GHG Protocol and Science-Based Targets Initiative standards with the support of the Supplier LOCT collaborative.AMERICAS MOST RESPONSIBLE COMPANIESThe ranking focuses on a holistic view of corporate responsibility that considers all three pillars of ESG:Environment,Social,and Corporate Govern

267、ance.AMERICAS CLIMATE LEADERSUSA Today award based off of a reduction of climate intensity from published years.ISCC CERTIFICATIONAll ethanol facilities were certified in ISCC Plus and ISCC EU.AMERICAS MOST SUCCESSFUL SMALL COMPANIESAwarded based on stock return,sales growth,return on equity and ear

268、nings growth in the last 12 months and five years.SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA47FOSTERING A SAFETY CULTUREMaumee,OH,Large PackFOSTERING A SAFETY CULTUREEveryone Ow

269、ns SafetyRoad 2 Zero Our ApproachRoad 2 Zero Safety CultureLife Critical Policies and Process SafetyEmergency ResponseSafe and Sustainable Supply Chain484950515254SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERN

270、ANCEGLOSSARYPERFORMANCE DATA48EVERYONE OWNS SAFETYAt The Andersons,we believe that protecting all employees,contractors,and customers from hazardous conditions or risks is our first and highest priority.Workplace safety is a shared responsibility impacting the entire organization from senior leaders

271、hip and supervisors to individual contributors in our front-line operations.We are focused on a culture of accountability that enables employees to have a direct say into ensuring they and their co-workers are following safe work practices and adhering to our Life Critical Policies.From hazard recog

272、nition and auditing procedures,to training and implementation,our employees are being equipped and empowered to do their jobs safely.FOSTERING A SAFETY CULTURESAFETY IMPROVEMENTSAt The Andersons,each facility identifies and implements safety improvements to eliminate employee hazards as part of thei

273、r preventative maintenance and facility upgrade programs.By working to engineer hazards out by design,we reduce our employees exposure to potentially harmful conditions.Our Denison,Iowa,ethanol plant updated the bin reclaim system from sweeps augers to the Bin Gator.The newly automated process elimi

274、nated the requirement of confined space entry and using heavy equipment in the bins during the corn reclaiming process.The facility also adjusted the placement of the centrifuge beam for the hoist to allow for safer handling of centrifuges without the need for side rigging.This update was not only s

275、afer,but also more efficient,saving the time it took to set up and coordinate side rigging.LIFE CRITICAL POLICIES Bulk Storage Entry Combustible Dust Hazard Confined Space Entry Elevated Work Hazardous Material Management Hot Work Industrial Mobile Equipment Rail Safety Rigging,Hoisting,and TowingSU

276、STAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA49Road 2 Zero is a company-wide safety program launched in 2020 to build a safety culture and reduce Serious Injury and Fatality(SIF)inci

277、dents.It focuses on the elimination of serious EHS concerns by prioritizing risk assessments,improved engineering,education,and training.Since the programs implementation,we have seen employees improve their ability to proactively identify SIF conditions(SIFCON).We continue to focus on training effe

278、ctiveness by leveraging our regional safety personnel to conduct field verification audits.INJURY REDUCTION Our employees continue to demonstrate their focus on reducing risks and injuries company-wide with a reduction in the injury rate.ROAD 2 ZERO OUR APPROACHFOSTERING A SAFETY CULTUREORGANIZATION

279、2022 RECORDABLE INJURY RATE(TRIR)2023 RECORDABLE INJURY RATE(TRIR)2022LOST TIME INJURY RATE(LTIR)2023LOST TIME INJURY RATE(LTIR)ALL1.981.120.49 0.58 NUTRIENT&INDUSTRIAL1.920.910.68 0.39 RENEWABLES2.150.000.62 0.00 TRADE2.461.930.251.08ORGANIZATION20222023NUTRIENT&INDUSTRIAL153255RENEWABLES123255TRAD

280、E202307SIFCONS IDENTIFIEDORGANIZATION20222023NUTRIENT&INDUSTRIAL153282RENEWABLES316308TRADE503687*Identified through reporting,audits,and assessmentsORGANIZATION2022 CONTRACTOR RECORDABLE INJURIES2023 CONTRACTORRECORDABLE INJURIESALL152NUTRIENT&INDUSTRIAL122RENEWABLES00TRADE30Contractor injuries dec

281、reased by 84%from2022 to 2023CONTRACTOR SAFETYContractors continue to play a vital role in keeping The Andersons operations running safely and smoothly by providing important knowledge,tools,and resources.Our Contractor Safety Program requires a third-party assessment of the contractors injury data,

282、safety programs,and insurance information.Data is collected and scored to select only the safest contractors to perform work at our facilities.All contractors receive company-specific training prior to beginning work onsite.While at locations,facility employees either work with the contractor or con

283、duct onsite reviews during the entire scope of the project.All four ethanol facilities went the entire year(448,898 hours)without an OSHA recordable injuryREGULATORY SAFETY TRAINING:100%COMPLETE98%OF ALL ASSIGNED SAFETY TRAINING COMPLETED CORRECTIVE ACTIONS*TotalSIFPOTincidentsin 202399SUSTAINABILIT

284、Y AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA50ROAD 2 ZERO SAFETY CULTUREFOSTERING A SAFETY CULTUREHaving a safety culture that is best-in-class requires commitment and accountability.At The An

285、dersons,employees,contractors,and managers are expected to lead by example and each one is held to the same standards.Each year,we conduct a survey to assess our success and identify areas for improvement in building our safety culture.The surveys results drive actions in our business to address ide

286、ntified gaps,including conducting safety days and recognition events,increasing safety-focused discussions and actions at facilities,and deploying task hazard evaluations to assess safety risks in advance of completing work.84%OVERALL SAFETY FACTORFAVORABLESAFETY SURVEY RESULTS8%higher than allindus

287、tries globally*LEADERSHIP LEADS BY EXAMPLEFAVORABLE*Based on dss+survey data45%rating improvement over 2022 among employeesin the Trade business for:Safety Achievement and Recognition Employee Satisfaction with Overall Safety Performance22%rating improvement for peer/co-workerprioritization of safet

288、y compared to 202216%16%84%SUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA51LIFE CRITICAL POLICIES&PROCESS SAFETYFOSTERING A SAFETY CULTURELIFE CRITICAL POLICIES(LCP)The Andersons LC

289、Ps continue to be the focal point for preventing SIF events in our most hazardous working environments.Each year,we review these policies to see how we can improve.Our evaluation determined we needed two new LCPs covering mobile equipment and the use of rigging and hoisting as they presented the hig

290、hest risks for a SIF injury based on industry and company safety statistics.We completed training and field verification with targeted teams to improve understanding of our process.RISK ORIENTED INSPECTIONSPROCESS SAFETYSeveral of our facilities underwent visits from the U.S.EPA to evaluate our Risk

291、 Management Program(RMP).The RMP is a partner program to OSHAs PSM program and the inspection reinforced our emphasis on managing hazardous chemicals to minimize the potential for on-site and off-site incidents.Recognizing the importance of compliance and safety,we have taken proactive steps to addr

292、ess any identified areas for improvement.We contracted consultants to guide us through the necessary adjustments and enhancements to navigate these complex regulations.This commitment underscores our dedication to maintaining the highest standards of safety and environmental responsibility across al

293、l our operations.Our ethanol plants continued their work evaluating the use of hazardous chemicals to confirm we are leveraging the safest processes.In 2023,the Greenville,Ohio,and Clymers,Indiana,plants eliminated the use of anhydrous ammonia as a nitrogen source and some pH control.All four plants

294、 have successfully substituted safer alternative chemicals that have less potential for on-site and off-site impacts.The Andersons regularly identifies hazards and conducts studies to confirm our facilities are complying with relevant safety regulations and maintaining a safe work environment.Arc Fl

295、ash We conducted arc flash studies to assess and mitigate the risks associated with electrical arcs when working with electrical equipment.Dust Hazard We completed a dust hazard analysis to identify and manage the risks for potential explosions or fires created by combustible dust.Our facilities con

296、tinue to work through mitigating the risks in these studies and several sites have contracted third-party consultants to assist them in evaluating,justifying,and properly identifying these risks.The Andersons Trade and Renewables businesses the largest part of our business deployed task hazard evalu

297、ations as a standard practice for all facility employees.This program emphasizes risk assessment for both routine and non-routine work in conjunction with written standard operating procedures to drive a disciplined approach to completing work.Our ethanol plants also utilize these evaluations couple

298、d with a job safety analysis for non-routine work as part of the safe work permit process.Houston,TexasSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA52Reaching our Road 2 Zero goal

299、requires that employees be equipped with the tools and knowledge to address emergencies.Each facility maintains an emergency preparedness plan that is reviewed annually and all production facilities have an emergency response team.Sites are responsible for conducting training that may include commun

300、ity members,outside emergency responders,and regulatory agencies.In fact,many of our sites review their plans with local responders to increase their readiness in an emergency situation.The review includes an overview of the products,chemical storage,any required personal protective equipment,and wh

301、ere to access safety data sheets.Each training or drill is recorded in the companys EHS software system.Opportunities for improvement are documented and corrective actions are created so they can be monitored and addressed.ETHANOL EMERGENCY PLANNING The Andersons ethanol plants are actively implemen

302、ting a comprehensive emergency planning,prevention,and response process to address Facility Response Plans(FRP),Spill Prevention Control and Countermeasure plans(SPCC),and Storm Water Pollution Prevention Plans(SWPP).These plans require a review of the worst-case off-site spill to understand the dow

303、nstream impacts and require coordination for planning,exercises,and response with emergency spill response contactors as our sites are not staffed for responding to off-site impacts contemplated by the FRP.The SPCC and SWPP plans provide opportunities for maximizing the on-site management of materia

304、ls with a focus on minimizing rainwater contact with exposed materials;structural integrity of the storage tanks,containers,and buildings;as well as providing adequate secondary containment to protect loss of primary vessels.With the changes to the EPA RMP rules,there is an opportunity to deepen the

305、 relationships with emergency responders by reviewing more complex incidents and response scenarios.MAUMEE GRAIN RESCUE TRAININGIn September of 2023,the Maumee,Ohio,grain site hosted grain rescue training taught by the Ohio Fire Academy.The Ohio Fire Academy brought the Grain Comprehensive Agricultu

306、ral Rescue Trailer(C.A.R.T)to the site for classroom and hands-on training over a four-day period.Local area fire fighters and employees from The Andersons Maumee and Toledo,Ohio,grain sites participated.Local fire and rescue responders do not frequently experience the risks associated with tall gra

307、in silos,therefore,this training gives fire departments the knowledge to safely evaluate the hazards and successfully extract trapped victim(s).EMERGENCY RESPONSE FOSTERING A SAFETY CULTURE116 DRILLS/TRAINING EXERCISES TOOK PLACE AT OUR FACILITIES.Maumee,OHMaumee,OHSUSTAINABILITY AT THE ANDERSONSPUS

308、HING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA53EMERGENCY RESPONSE FOSTERING A SAFETY CULTUREEach year facilities across the company host Safety Days to emphasize the best practices and regulations that help our wor

309、kforce and customers remain safe.In 2023,we held 24 safety days.READING SAFETY DAY On June 10,2023,the Reading,Michigan,facility hosted a safety day for employees,local growers,and first responders.This multi-facility training included employees from Reading,White Pigeon,and Hudson,Michigan.Customer

310、s,their families,and several first responders attended the training.The first responders represented ten different agencies across the communities.The day included an overview of operations within a grain facility and discussions on emergency action plans and elevator safety.The tour included a look

311、 at the grain bins to provide a visual of the size and risks and to reinforce the importance of safety and training.The event included a simulated demonstration on grain bin entrapment using a gravity wagon full of corn.This allowed first responders a hands-on opportunity to rescue someone utilizing

312、 a grain rescue tube and hand augers.Additionally,it allowed some of our customers a chance to safely experience what it would be like to be buried up to their waist in grain.COMBUSTIBLE DUST SAFETY DEMONSTRATIONCombustible dust is one of the hazards faced by many of our facilities.To bring awarenes

313、s to this hazard,EHS worked with Imagination Station,a local science education facility in Toledo,Ohio,to conduct a demonstration on the flammability and dangers of combustible dust.Combustible dust can accumulate on any upward facing surface and fine dusts can cling to vertical surfaces,as well.Emp

314、loyees were shown the risks associated with dust in small particles and reminded of the importance of regular housekeeping at the facility.Maumee,OHMaumee,OHIdaho LocationsLouisiana LocationsGreenville,OHSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESGROWING AS A

315、COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA54PRODUCT QUALITYNon-GMO project verification and our organic system plans are in place to confirm we maintain the integrity of our products.Audits are conducted at all required operations and at our Maumee,Ohio,and Overland Park,K

316、ansas,offices to confirm compliance with the various food safety,quality,and product integrity requirements.As an importer,The Andersons is subject to meeting the U.S.Food and Drug Administrations(FDA)Foreign Supplier Verification Program(FSVP)requirements.Our team has been trained and certified on

317、FSVP requirements through the Food Safety Preventative Controls Alliance to validate compliance by our foreign suppliers.Our foreign supplier approval and monitoring process includes hazard analyses,evaluation and approval of the foreign supplier,audits(based on risk level),verification and correcti

318、ve actions,supplier re-evaluation,importer identification at entry,and records and documentation approval and retention.In 2023,we experienced zero recalls,zero incidents,and zero fines or penalties for noncompliance with food regulations or from voluntary codes related to the health and safety impa

319、cts of products or services.12 GFSI-BASED AUDITS WITH 100%CLOSURE OF ALL NON-CONFORMANCES FOR CERTIFICATION.QUALITY MANAGEMENT SYSTEMSAt The Andersons,our Quality Management System(QMS)is of the utmost importance.The QMS helps confirm that the products we procure meet food safety,quality standards,a

320、nd regulatory compliance.We employ trained and certified qualified individuals who oversee the process,which includes the supplier approval process and supplier management system.Our QMS is based on the Global Food Safety Initiative(GFSI)requirements which are structured to validate certified partic

321、ipants produce safe food for their intended consumers.The program follows the Hazard Analysis Critical Control Point(HACCP)framework.HACCP is a management system in which food safety is addressed through the analysis and control of biological,chemical,and physical hazards,including raw material prod

322、uction,procurement and handling,to manufacturing,distribution,and consumption of the finished product.SAFE AND SUSTAINABLE SUPPLY CHAINFOSTERING A SAFETY CULTUREZERO RECALLSZERO INCIDENTSZERO PENALTIESHensall,OntarioSUSTAINABILITY AT THE ANDERSONSPUSHING FORWARD WITH ENVIRONMENTALLY SOUND PRACTICESG

323、ROWING AS A COMMUNITYFOSTERING A SAFETY CULTUREGOVERNANCEGLOSSARYPERFORMANCE DATA55ISCC CERTIFICATIONThe International Sustainability and Carbon Certification(ISCC)is a sustainability certification system for all feedstocks and markets.In 2023,The Andersons achieved ISCC EU and ISCC Plus certificati

324、on across all ethanol plants to allow its corn oil to be sold as renewable feedstock.ISCC EU audits against legal requirements of the Renewable Energy Directive(RED II),legislation established in the EU requiring fuel producers and suppliers supply a minimum of 14%of consumed transportation energy a

325、s renewable energy by 2030.ISCC EU also audits against ecological and social requirements.ISCC Plus is a broader certification system applicable to all markets and sectors not regulated by the RED II.SEDEXSedex promotes ethical business practices by allowing suppliers to maintain data on ethical and

326、 responsible practices which can be shared with customers.The Sedex Members Ethical Trade Audit(SMETA)protocol which is updated annually across topics like human rights,safety and health,contractor safety,labor practices,and work hours.Sedex allows suppliers to view the companys practices and proced

327、ures ensuring transparency is evident throughout all operations.SAFE AND SUSTAINABLE SUPPLY CHAINFOSTERING A SAFETY CULTUREThe Andersons continues to participate in supply chain memberships with Supplier Ethical Data Exchange(SEDEX)and EcoVadis to confirm transparency throughout all supply operation

328、s.By participating in both,we are able to meet the requirements of our customers on various levels of sustainability reporting.ECOVADISThe EcoVadis sustainability assessment methodology provides an evaluation of the integration of our sustainability principles into our everyday business and manageme

329、nt system.Based on international standards like GRI,the United Nations Global Compact,and ISO 26000,the methodology includes an overview of how we address climate,labor and human rights,ethics,and sustainable procurement.The process is based on seven founding principles:Assessment by international e

330、xpertsTailored to industry sector,country,and company sizeSource diversification to ensure rich stakeholder input forreliable scoringUtilize technology to ensure a secure and confidentialprocess and accelerated cycle timeTraceability and transparency of documentationEvidence-basedExcellence through

331、continuous improvementUSDA CLIMATE SMART COMMODITIES In 2023,the U.S.Department of Agriculture(USDA)committed to supporting a diverse agriculture supply chain through Partnerships for Climate-Smart Commodities and will invest over$3.1 billion in 141 projects.The Andersons joined with other companies

332、 to implement a Climate Smart project.This project was selected and awarded a grant to fund the work over five years.By design,the project will focus on climate smart practices in sourcing areas that are recognized as water impaired.The Soil and Water Outcomes Fund will lead the team to recruit farm

333、ers and collect and analyze data.This project will provide sustainable sourcing metrics to our farmers and project partners.The GHG-related learnings produced from the project will help us learn more and potentially bring similar programs to others in the agriculture supply chain to help them meet their climate and sustainability goals.In addition,we continue our involvement with water-related iss