The Richardson International Sustainability Report outlines our corporate responsibility approach and our commitment to quality, safety, and operational excellence.
2022 SUSTAINABILITY REPORT
Table of Contents
3
INTRODUCTION
29 SOCIAL 30 Supporting Local 30
52 GOVERNANCE 53 Responsible and Reliable Supply Chain 53 Code of Conduct 55 Operational Risk Management 55 Quality Assurance and Food Safety Data 56 Quality Assurance and Food Safety Risk Assessment Strategy 58 Cybersecurity and Data Privacy 58 Cybersecurity Initiatives 62 Industry Representation 63 Business and Internal Stakeholder Representation
3 4 5 6 7 8 9
Outline
Richardson Foundation Community Initiatives Richardson Pioneer Community Initiatives
ESG Approach
31 34 36 37
Message from CEO About Richardson
Growth and Expansion
Richardson Innovation Centre
Our Network in 2022 Culture and Values
Information Technology – Donations and Recycling Programs 38 Operational Safety and Emergency Preparedness 39 A Culture of Safety 40 Empowering Safety Culture 42 Quality Assurance, Food Safety, and Regulatory Compliance 43 Regulatory Compliance 44 Risk-Based Preventative Controls 45 Agriculture Commodity Harvest Monitoring Program 45 KPIs: Quality and Food Safety 46 Supplier Risk Management 46 Sedex Members Ethical Trade Audit 47 Prioritizing our Human Resources 48 Our Culture and People 50 Employee Engagement 51 A Respectful Workplace
Our People
10
From Farm to Fork
11
Our Business and Brands Leading with Innovation
12
13 ENVIRONMENT 14
Operational Excellence
15 17
Air Quality and Emissions Reduction Water Conservation, Preservation, and Waste Management
19
Maximizing Energy Efficiency
20 Lead with Agronomy 21 At the Farm Gate 22
Nutrient Management Frameworks Understanding Farm Operations
24 25 27 28
Clean Farms
Genetics and Plant Breeding
Demonstrating Best Management Practices
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1.0 | Outline
ENVIRONMENT: How we evaluate the environmental footprint of our operations and all activities across our supply chain environment – how we practice good stewardship.
SOCIAL: How we address and manage our connections with employees, customers, partners, and communities.
GOVERNANCE: How we approach corporate policies, standards, industry best practices, information disclosures, auditing, and compliance issues.
The Reporting Period This is Richardson International’s first Environment, Social, Governance (ESG) report. All information contained within this document will be updated annually. January 2022 – December 2022 Data range and applicability: 2019 - 2022
Frameworks United Nations’ Sustainable Development Goals (SDGs)
All financial information outlined in this report is in CAD, unless otherwise noted.
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ESG Approach
Materiality Assessment
The ESG Steering Committee and Systems The ESG Steering Committee is comprised of senior leadership and internal subject matter experts representing all operating divisions. The ESG Steering Committee team: • Provides support, guidance, and oversight to the organization on ESG matters. • Manages the organization’s materiality assessment • Leads stakeholder engagement around ESG initiatives. • Manages and maintains the ESG report. Our Stakeholders • Grain and food customers and consumers • Government (regulators) • Employees and managers • Shareholders and board members
High Priority
Moderate Priority
E
Sustainable Business Practices
E
Materials and Energy Consumption
• Emissions • Waste management • Training, development • Retention • Succession planning
S
Corporate Culture
S
Community Investment
S
Talent attraction and Management
S
Competitive Compensation
S
Awards and Special Recognition
G
Systems Automation, Technologies, and Innovation
G Risk Reduction and Elimination and Continuous Improvement G Supplier and Customer Relationships and Risk Management G Corporate and Regulatory Compliance and Relationship Management
• Regulator • Industry
G
Capital Investment
G
Execution Excellence and Change Management
G
Consumer Influences and Demand
G
Geo-Political and Non-Tariff Trade Barriers
G
Acquisition Onboarding
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2.0 | Message from CEO
When I joined Richardson International as President and CEO over 25 years ago, my goal was to grow and diversify what was then a 128-year-old company to create a strong, relevant, successful, global Canadian enterprise. Today, Richardson is truly a world leader in agriculture and food processing. Our leadership in Western Canadian agriculture, crop inputs, sales, and grain handling and exporting is complemented by vertically integrated operations that include commodity processing and food packaging facilities in Canada, the United States, and the United Kingdom. Our vertical integration strategy reflects our drive to provide value to our customers – our farm customers, our export customers, and our commercial and retail food customers. Continual investment in our facilities, our people, and our processes means we can deliver on our promise of excellence. Expansion into new markets and related business verticals – such as our 2021 acquisition of Italgrani USA, North America’s single largest durum mill – are strategic business decisions that positively benefit the entire value chain.
Our commitment to excellence goes hand-in- hand with our drive to innovate. Continuous improvement is the result of practical goals backed by solid economic rationale and long- term sustainability considerations. As the needs of our stakeholders change, we must be prepared to meet both these current needs, as well as future ones. This means taking a long-term view in our planning and making incremental changes that ensure we are a positive influence on the economies, societies, and environments in which we operate. We take our role as a major global food source provider very seriously. The spirit and intent of our ESG initiatives is to deliver real-life, practical solutions that ensure the growing global population has access to nutritional, affordable, and sustainable food. “Our goal is to be the kind of business organization in which people can place their trust.” These are the words of our founder, James Richardson. This ESG report outlines the many ways in which we continue to strive to earn and hold this trust every day.
Curt Vossen Chief Executive Officer Richardson International
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3.0 | About Richardson
Always Growing At Richardson, we strive to be a partner, supplier, and employer of choice. Richardson International is a global leader in agriculture and food processing. Our business starts with generations of relationships with Canadian growers. These partnerships took root across Canada over 160 years ago. Since then, we have grown, expanded, and reinvented our business to bring their crops to international markets, and to kitchens around the world, through
quality food products and ingredients. We are always improving our facilities,
processes, and products. We are committed to quality, safety, and excellence in all aspects of our business.
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Our Network in 2022
New Builds
SWAN RIVER, MB
HUALLEN, AB
HIGH LEVEL, AB
Integration of North Dakota Elevators into Richardson Agribusiness Operations
TOLLEY,ND
BENEDICT, ND
POWERS LAKE, ND
A Leader in 4R Nutrient Stewardship
Launched Proprietary Nitrogen Stabilizer
Repositioned Wesson for a new generation of consumer
OF 2021-23 4R ACRES grown in partnership with Richardson Pioneer
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Culture and Values
TRUST We deliver on our promises. Our customers and partners know we are reliable. We empower our people and trust them to act in the best interest of our business. TEAMWORK We value strong partnerships – internally and externally. When we work together toward a common goal, we are more successful. Respect and fair treatment are integral to how we operate. We are community-oriented. INNOVATION We are resourceful and we value creativity. We approach our work with vision and initiative.
EXCELLENCE From best-in-class talent,
facilities, assets, and practices, we are dedicated to excellence in customer service. We are
committed to quality and continuous improvement.
STRATEGIC THINKING We are problem solvers, backed by data and accurate information. We are practical, yet effective, as we make informed investments that support our continued success.
ETHICS We are a responsible employer and corporate citizen, driven by integrity and leading by example. We care about the continuity of our operations.
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Our People
Work that Matters We are proud to be one of Canada’s Best Managed Companies and we put into practice important values such as integrity, inclusion, and innovation at all our facilities across Canada, the U.S., and the U.K. With over 3,000 full-time and term employees in diverse agricultural, operational, and corporate roles, we are working together to feed the world. As global food requirements rise, our company continues to grow and is well positioned to meet ever increasing demand.
Richardson International Head Office Richardson Pioneer Divisional Office Ag Business Centres
Port Terminals Joint Venture Terminals Richardson Innovation Centre U.S. Country Office Italgrani USA Control Chemical Corporation
Richardson Farms Richardson Oilseed Richardson Milling
U.K.
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From Farm to Fork At Richardson, the work we do is essential. Every day, we work together to ensure a steady food supply for people around the world. Our vertically integrated operations support a farm to table approach, through agriculture and food processing.
Sells crop inputs seed, fertilizer, crop protection, and biological products to farmers, who then grow the crops. Uses a wide range of digital tools and technologies to recommend products and practices for grower customers.
CROP INPUTS RETAILING
Buys back the crops through our grain handling and merchandising network for domestic and international markets - served through seven port terminals.
GRAIN HANDLING AND MERCHANDISING
A portion of the commodities Richardson handles are routed to our milling and oilseed operations for processing, production, and packaging.
FOOD PROCESSING
Markets and sells the finished value- added food products and ingredients to retail, food service, industrial, and international customers.
FOOD PRODUCTS
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Our Business and Brands
RICHARDSON OILSEED
OATS MILLING
DURUM MILLING
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Leading with Innovation As agricultural practices have evolved, so too has Richardson – growing and changing to meet the needs of our customers, partners, and global markets. Whether we are testing new crop protection technology at our demonstration farms, or developing improved canola oil products in our Innovation Centre, we are leading with innovation.
Innovative product development and culinary demonstration. Richardson Innovation Centre
Quality assurance and food safety. Packaging plant
WINNIPEG, MB
OAKVILLE, ON
Employee learning and networking at Richardson's CropWatch Innovation Tour. Bennett Farm
RICHARDSON, SK
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Environment, Social, Governance Report – ENVIRONMENT
At Richardson, our commitment is to be a responsible global partner in all facets of our operations and in the communities in which we operate. With best-in-class talent, facilities, assets, and practices, we are dedicated to good stewardship and excellence in customer service. We operationally define stewardship through the actions we take to reduce the environmental footprint of our actions, limit impacts on air, land, and water, and what we give back in time and capital to our communities. We believe it is critical to continue advancing our industry through investing in new tools and technologies to help produce the best products possible in the most efficient, competitive, and sustainable way. Our corporate Environmental Policy targets the identification and mitigation of impacts to air, land, and water from our business.
All divisions compliant with 150+ environmental permits We comply with government permits and industry best practices and set our own priorities for effective environmental management.
Collaborate with regulators through consultation periods, inquiries, and investigations We ensure our standards are considerate of environmental
All facilities operate under jurisdictional permits for emissions We apply a consistent approach to environmental management across all of the jurisdictions where we operate.
stewardship and business development objectives.
THEMES
From Farm to Table
Agricultural Innovation
Operational Excellence
Responsible Resource Management
1.0 | Operational Excellence
Relevance to Our Business As a partner of choice, operational excellence dovetails with all of our strategic objective setting activities. We present to our people, partners, and customers the most efficient practices and technology available in the marketplace. We invest in our facilities and assets and are committed to continuous improvement processes and innovations because this is essential for good environmental stewardship and business sustainability.
Water Consumption & Waste Water Management
Heat Recovery Initiatives
Dust Emissions Initiatives
Carbon Emissions Initiatives
Waste Management
Energy Efficiency
Natural Gas Initiatives
Electricity Initiatives
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★
Richardson Oilseed Processing
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★
Richardson Oilseed Products
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Richardson Milling
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★
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Richardson Pioneer & Terminals
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★ Additional details about specific 2022 initiatives are provided in the body of this report
Carseland Ag Business Centre
Richardson Port Terminal
CARSELAND, AB
NORTH VANCOUVER, BC
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Actions and Impacts
Air Quality and Emissions Reduction Richardson is committed to the continuous improvement of air quality near our facilities through the installation of leading edge emission reduction technologies. We seek to limit fugitive emissions – especially in our grain handling operations – and strike an appropriate balance between performing essential operations, while minimizing environmental and community impacts.
Reduction Initiative
Goal
Outcomes
Food Processing Facilities Heat Recovery Units
• Reduce natural gas usage • Decrease GHG emissions
• 85,000 metric tonnes of steam captured annually and condensed for use in other processing activities (All locations). • Reduce excess heat loss to the atmosphere (All locations). • Local water supply conserved (All locations). • 55% fuel use reduction (Vancouver, BC, Yorkton, SK (Oilseed). • 84% nitric oxides and particulate matter emissions reduction (Vancouver, BC, Yorkton, SK (Oilseed).
Hybrid Locomotives
• Reduce fuel consumption volumes • Reduce carbon emissions
Agribusiness Operations and Port Terminal Facilities Dust Reduction Technologies
• Minimize fugitive dust emissions through specialized grain load-out hoppers (Vancouver, BC; Sorel-Tracy, QC). • The application of mineral oil at strategic points in the grain handling system, to reduce fugitive dust emissions during loading of grains to export vessels (Hamilton, ON). • Maximize dust collection through high efficiency filter systems (All locations). • Periodic sampling and monitoring to verify compliance with environmental regulatory standards (All locations). • Targeted monitoring, preventative maintenance programs, and inspection to maintain the systems at optimum efficiencies (All locations). • Opacity training (All locations).
Ongoing
Emission Monitoring
Ongoing
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Richardson's oilseed processing facilities are among the most efficient operations in the world. Our Yorkton, Saskatchewan canola crush facility has the lowest CO2 emission rate – per tonne of production – when compared to the emissions averages of other major Canadian oilseed processors.
0.0402 CO2/MT
Richardson Yorkton Oilseed Crush Plant
0.0530 CO2/MT
Average Canadian Oilseed Processors Association (COPA) Member
0.0569 CO2/MT
Richardson Lethbridge Oilseed Crush Plant
Note: Lethbridge used to be #13 of #14 in terms of efficiency but, after the capital expansion in 2016 it jumped up to #9 in overall efficiency rating.
VALUES in ACTION Heat Recovery for Climate Control Initiatives in Oat Processing Facilities
SK
MARTENSVILLE, SASKATCHEWAN Kiln steam is recycled as a form of heat recovery and used in other processing steps or for facility heating efforts in cold climate conditions. REDUCTION OF ENERGY USE: 16,000 CFM/MINUTE SOUTH SIOUX CITY, NEBRASKA Processing compressors are replaced with VFD compressors which recover heat from facility processes and recycle it to regulate warehouse temperatures. ANNUAL OPERATING SAVINGS: USD $130,000.
NE
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Water Conservation, Recycling, and Waste Management Water is an essential resource to Richardson. Equipment at our processing facilities requires a consistent and high volume water supply to operate. This is why we place great value on water conservation, recycling, and recovery systems to ensure access to the volumes required in the most efficient and sustainably sound manner possible.
Richardson employs accredited waste management service providers, who manage the disposal of waste consistent with the rules of the jurisdictions in which we conduct business. We move office and operational waste through standard recycling programs for paper products, waste oil and lubricants, batteries, metals, and other extraneous materials.
Reduction Initiative
Goal
Outcomes
Food Processing Facilities Water Treatment Plants
• Reduce wastewater volumes. • Reclaim water for reuse.
• > 60,000 metric tonnes wastewater recovered and treated annually.
Heat, Ventilation, Air Conditioning (HVAC) Upgrades
• Reduce water consumption. • Cool facility
• ~38 million gallons water consumption reduction annually (Memphis, TN) .
Clean in Place (CIP) System Upgrades • Sustainably perform cleaning and sanitation activities.
• ~7% water consumption reduction (Oakville, ON) . • 43,200 gallons processed annually (South Sioux City, NB) . • ~$215,000 USD cost savings.
Effluent Filtration Systems
• Reduce effluent content in process waste water stream. Effluent waste is organic materials used in the oat coating process.
Process Flow Inversion
• Recycle slurry used in coated and cluster oat products for further use within the facility. • Prevent slurry release into sewage system.
Ongoing (South Sioux City, NB). Project initiated in 2019
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VALUES in ACTION
MARTENSVILLE, SASKATCHEWAN Martensville Oat Mill Partners with the Province on Wastewater Reduction Efforts Richardson Milling Limited works in close collaboration with the Province of Saskatchewan and the University of Saskatchewan on important water management initiatives. We divert one million gallons of process water to irrigation systems annually – which equates to approximately two inches of rainfall over a 100-acre parcel of land. ANNUAL WASTEWATER REDUCTION: FACTOR OF 10
SK
PORTAGE LA PRAIRIE, MANITOBA Water Preservation through Reverse Osmosis
MB
A reverse osmosis system was installed in a boiler room to improve water quality and reduce solid waste by 98%. This system also neutralizes alkalinity and prevents line corrosion and mechanical failure in the boiler system. Combined benefits include reduction in water consumption, improved thermal energy
and fuel use, and chemical use reduction. ANNUAL COST SAVINGS: CAD $68,000 ANNUAL WATER CONSUMPTION REDUCTION: 30 MILLION LITRES
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Maximizing Energy Efficiency
Reduction Initiative
Outcomes
Food Processing Facilities
Boiler System Upgrades
• ~5-10% reduction in natural gas consumption per 1 metric tonne of canola oil or oat product produced (Portage La Prairie, MB; Lethbridge, AB; Bedford, UK) .
LED and Motion Detection Lighting Systems
• 50-70% reduction in electricity consumption. • Eliminated mercury deposits.
New Kiln Installation
• 17% KW per hour reduction in electrical consumption (Barrhead, AB) .
Combined Heat and Power (CHP) Strategy
• Electricity is generated and used on-site through natural gas. • Conventional method results in >65% energy loss when compared to CHP method.
Soft Starters and Presence Sensing Controls
• Reduces wear and tear on equipment. • Reduces peak horsepower required at equipment start-up. • Reduces peak load on electrical system. • Results in minimized overall demand on electrical grid.
Agribusiness Operations and Port Terminal Facilities
• > 126,000 cubic metres per year reduction in natural gas consumption • 50% less drying time, 63% less energy consumption per metric tonne grain dried versus conventional drying unit (Lamont, Lacombe, Dunvegan, Provost, AB; Dixon, SK) .
High Efficiency Grain Dryers Richardson provides energy efficient grain drying services to Western Canadian growers.
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2.0 | Lead with Agronomy
What is Modern Agriculture?
Relevance to Our Business A successful farm is a sustainable farm – and vice versa. Our agribusiness division supports growers to enhance crop production and farm operation profitability. To achieve both of these goals, agricultural innovation and sustainability are top priorities. Richardson leads with agronomy and supports these efforts with digital agriculture. Our boots-on-the- ground agronomists work directly with growers in crop planning, soil sampling, and field scouting and work under the following principles: Understanding farm operations. Richardson conducts crop planning activities annually with 75-80% of all grower customers, allowing both the grower and our business to better understand farming operations and apply sustainable cropping decisions.
Modern agriculture describes the evolving approach to agricultural innovations and farming practices that helps grower increase efficiencies while using land more effectively. Its goal is to increase productivity, making food more accessible and affordable. It describes practices which have, over decades, liberated societies from poverty and hard agricultural labour. Richardson supports Canadian growers who are paving the standard for innovative practices and tools that preserve the integrity of the environment and ensure production continuity. We take an optimistic view toward human capabilities and the power of technological innovation to move sustainability in the right direction.
Conservation tillage. Minimizing soil disturbance reduces erosion and nutrient loss and allows organic material to build, resulting in healthier soil.
Maximizing crop diversity. A well-designed crop rotation helps reduce the need for higher volumes of crop nutrient products and crop protection products, improves soil structure and health, and increases farm resilience.
Managing nutrients. Best practices in crop nutrient use optimizes plant nutrient uptake, increases yield, and maximizes grower ROI, all while achieving verifiable reductions in emissions.
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N
At the Farm Gate Today’s Canadian grower must balance economics and the environment. Innovations that lead to increased yields on a static land base – while maintaining the integrity of the soil – ensure global food security. • Agricultural innovation: new technologies in seed, crop nutrition, crop protection, and biologicals products support yield and sustainability goals. • Yield growth: to remain viable, a grower’s profitability must remain at the forefront. • Digital innovation: provides new, intuitive, and optimized ways to deploy seed, crop nutrition, and crop protection products. It allows for in-field data capture and the ability to gain insights from this data to maximize efficiencies and farm operation longevity.
Agricultural Innovation
Yield Growth
Digital Innovation
O
Agricultural productivity of major field crops in Canada has increased by approximately 34% since 2005 through the adoption of innovative technologies. >90% adoption rate of minimum tillage practices in Western Canada Between 1991-1994, a 1,000-acre farm in Saskatchewan, Canada would have released emissions equal to approximately four automobiles (4,600 kg of CO2/ vehicle/year) while producing crops. Between 2016-2019, this same farm would have sequestered the emissions from 432 cars - demonstrating the value of adopting minimum tillage, GM crops and use of glyphosate.
Source: Sutherland et al. 2021. Correlating GM crops, glyphosate use and increased carbon sequestration. Sustainability 13: 11679. https://doi.org/10.3390/su132111679.
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Actions and Impacts
Richardson Pioneer employs over 80 4R-designated agronomists in its Western Canadian network who work with growers to establish tailored plans for on-farm implementation, ~70% of Canadian crop acres operate under the 4R program with an eye on: • Reducing GHG emissions by up to 35% • Reducing phosphorus run-off by up to 60% • Ensuring fertilizer product use on-farm is specific, measured, and appropriate • Increasing profits by up to $87 per acre, when compared to a baseline crop
Nutrient Management Frameworks Fertilizer Canada’s 4R Nutrient Stewardship has been promoted and applied across Canada, under the umbrella of Agriculture and Agri-Food Canada’s Agricultural Greenhouse Gases Program and the Agri Innovation Program. With the federal mandate for a 30% reduction in emissions from nitrogen fertilizers by 2030, Richardson stands behind 4R Nutrient Stewardship as the best way to minimize environmental impacts of fertilizer use, without sacrificing crop yields. The proactive efforts of growers have made Canada one the most efficient fertilizer users in the world. This is a good news environmental story that supports global food production and security goals. Richardson is a leader in 4R Nutrient Stewardship: 2022: 3 million 4R-designed acres
2025 goal: 4 million 4R-designated acres
What is 4R Nutrient Stewardship? 4R Nutrient Stewardship is a science-based approach to nutrient management that involves applying the right source of fertilizer at the right rate, right time, and right place. 4R optimizes plant nutrient uptake, increases yield, and maximizes farmer profitability, while achieving verifiable reductions in emissions.
Right Source
Right Rate
Right Time
Right Place
Top scientists, and leading government and industry agronomists, have helped develop a 4R Climate- Smart Protocol which allows for farm specific measuring and reporting of emission reductions, to ensure Canadian farmers are recognized for their individual on-farm reductions in a quantifiable, verifiable way and allows them to produce saleable carbon credits. 4R has been formally recognized by the provinces of Saskatchewan, Manitoba, Ontario, and Prince Edward Island, and by national farm groups such as the Canola Council of Canada, the Canadian Federation of Agriculture, and Grain Growers of Canada. 4R Nutrient Stewardship is also recognized in the Government of Canada Sustainable Agriculture Strategy (SAS), which includes focus areas such as soil health, water, climate change mitigation, and biodiversity.
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VALUES in ACTION Richardson Pioneer Launches Own Nitrogen Stabilizer Nitrogen fertilizers are an important investment applied to crops to ensure agronomic success. Nitrogen is susceptible to loss through volatilization, denitrification, and leaching. These processes can take nitrogen away from the plants that need it and release it into the environment, which impacts greenhouse gas emissions and water quality. Nitrogen stabilizers are well-researched products that are proven to slow the release of nitrogen. This delay in nutrient release ensures plant available nitrogen isn’t lost to the environment before the crop has an opportunity to use it. As part of the 4R Nutrient Stewardship approach, Richardson Pioneer launched its own proprietary nitrogen stabilizer product in 2022.
CIRRUSX™ is a liquid formulation urease inhibitor that can be blended with UAN is used to treat urea. Richardson Pioneer is the industry leader in offering state-of-the-art fertilizer treater technology.
“When nitrogen fertilizer is applied efficiently, less loss occurs to the atmosphere. We strongly believe our customers are sustainable and among world leaders when it comes to fertilizer best practices.” - Steve Biggar (Assistant Vice-President, Fertilizer and Energy Products)
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Understanding Farm Operations Richardson conducts crop planning activities annually to ensure successful operations through the improvement of the integrity of acres and the optimization of yields. In addition, Richardson actively works with manufacturers to collaborate on the development of a variety of sustainability initiatives – from the ground up. We play an active role in educating and promoting the value of stewardship programs at the farm gate level.
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Clean Farms Richardson is an active supporter of the Clean Farms programming, which ensures crop protection product containers are disposed of properly and do not end up in a land fill. Over 5.4 million empty product containers, and more than 200,000 kg of unused crop protection products, are collected and recycled annually – this is the combined equivalent of 40 metric tonnes of recycled plastics.
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VALUES in ACTION Keep It Clean Campaign
The major themes of each annual campaign are:
JOINT INITIATIVE
• Only use products registered for use in Canada. • Always read and follow pesticide product label directions, application rates, timing and pre-harvest intervals (PHI). • Effectively manage insect and disease pressures. • Store crops properly to maintain quality and food safety and prevent cross- contamination. • Deliver as ‘what is declared’. The grower Declaration of Eligibility affidavit is a legal assertion the grower provides to the handler and exporter, assuring them the grain they deliver meets the requirements for the Class of Grain being called for, and has been treated in accordance with applicable regulatory requirements.
Canadian Grains councils
Food processor associations
Canadian grains and oilseeds handlers and exporters
This communication tool provides growers and crop advisers with information necessary for the production of market-ready crops, including only applying registered pesticide products to crops consistent with regulatory health and environmental risk assessments, as directed on crop protection product label(s). Richardson collaborates with the collective councils and associations in the annual development of the Keep it Clean Campaign messaging and contributes to the ongoing success of the campaign through direct-to-grower communications.
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Genetics and Plant Breeding Seed trait development continues to evolve beyond traditional breeding – targeting increased yield, greater insect, disease and drought tolerance and resistance, crop protection tolerance, and efficiencies in nutrient and water use. • Pod shatter trait: Confers resiliency to canola pods so that crops can be straight combined without the loss of seed. A reduction in the number of operational passes required to harvest these canola varieties contributes directly to an on-farm reduction of emission levels, compaction to soils, economic savings to the grower, and an overall improvement in sustainable cropping practices. • Midge tolerant wheat: Less crop protection application required to grow wheat crops. • Genetically modified (GM) crops: The introduction of GM canola reduces production costs and crop loss to insect, disease and weed pressures, resulting in increased yields. • 20% herbicide use reduction annually • Reduced soil tillage requirement per growing season • Cuts fuel consumption by 500,000 automobile equivalent annually
Canadian Certified Seed
Typically, the seed pipeline includes the contra seasonal production of canola seed in the southern hemisphere, with only 3% to 5% made available to Western Canadian growers. Richardson sources over 95% planting seed directly from Western Canadian producers.
95% - 97% bulk seed sourced • Wheat • Barley • Oats
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Demonstrating Best Management Practices Richardson operates two research and demonstration farms in Western Canada, where the latest agriculture products, techniques and equipment are tested under real growing conditions. In addition to providing insight about new product innovations, the farms demonstrate the value of applying climate smart principles. Farm trial data is shared across our agribusiness network. Our agronomists are empowered to translate information into action, supporting growers in their crop planning, soil sampling, and field scouting activities and providing timely recommendations on best management practices.
Kelburn Farm
Bennett Farm
HOWDEN, MB
RICHARDSON, SK
CropWatch Innovation Tour, Bennett Farm
RICHARDSON, SK
RICHARDSON FARMS AT A GLANCE
Works to improve farming methods and standard of living (ROI)
Encourages adoption of sustainable agricultural practices
Combined over 26,000-feet of creek and riverfront
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Environment, Social, Governance Report – SOCIAL
Richardson recognizes the significance of social matters on our network, our operations, and across our value chain. We strive to better the places where we do business because they are also where our people live and work. Engaging in meaningful and respectful relationships with our people, customers, partners, and communities – with good intent and on a constant basis – creates long-lasting impacts at the local level and on the world stage.
THEMES
Act Local, Think Global
Giving Back
A Culture of Safety
Perspective & Collaboration
Employee Development & Empowerment
1.0 | Supporting Local
VALUES in ACTION
Relevance to Our Business While our reach is global, the people and processes that make up our business start in our rural and urban communities. Having a positive reputation in these places, and engaging in consistent communication with these communities, creates opportunities for significant and long-lasting impact. We build connections through thoughtful investment, meaningful participation in the events and initiatives that make communities vibrant, supporting local businesses and skillsets, and practicing good stewardship. Our network participates in community-based groups including volunteer fire departments and energy services, advisory panels, and charitable and non-profit organizations.
$3 MILLION donated by Richardson to support United Way Winnipeg partner agencies
Actions and Impacts Richardson Foundation Community Initiatives
Richardson is committed to supporting community projects and organizations in the places where our people and our customers live and work. We invest in initiatives that meet the needs of the local population, such as youth initiatives, education initiatives, visual and performing arts, community recreation, and health and well-being initiatives.
$168,000 to fund elementary school curriculum-based programs, learning activities, and educational resources designed to explore agriculture
Richardson Foundation Community Giving • 2019: $1,939,600 – 65 projects funded • 2020: $739,750 – 43 projects funded • 2021: $2,166,000 – 50 projects funded • 2022: $1,162,000 – 46 projects funded
$300,000 contributed to the redevelopment of the Ag Grow Land exhibit for early childhood education in modern agriculture
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Richardson Pioneer Community Initiatives Richardson Pioneer contributes $500,000 annually to fund local initiatives and groups, including: recreational facilities, sports teams, 4H educational development clubs, and community centres.
• 2019: $650,924 • 2020: $378,989 • 2021: $300,817 • 2022: $536,886 *Downturn in sponsorship applications in pandemic years.
Richardson Pioneer Weyburn Gold Wings
Richardson Pioneer Sports Field - Olds College
Richardson Pioneer Spray Park - Falher Regional Recreation Complex
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VALUES in ACTION Richardson Pioneer Launches Community Celebration Initiative to Support Rural Saskatchewan Communities Richardson Pioneer has a strong commitment to supporting community programs that improve the areas it serves. The Richardson Pioneer Community Celebration was aimed at providing significant grants to fund important community projects in rural areas of Saskatchewan, where many of our employees and their families live. With the Canadian football league's Grey Cup championship set to return in 2022, after being postponed due to the pandemic, Richardson Pioneer looked for ways to be involved in the events leading up to this major event. In partnership with the Grey Cup team, the Richardson Pioneer Community Celebration initiative was extremely well received, with over 60 towns in Saskatchewan participating. From these submissions, six top participants were selected to receive a $25,000 grant to support their respective community projects. The selection criteria included demonstrating significant support from local community residents, as Richardson believes that initiatives that have strong community backing are more likely to make a meaningful impact.
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Winning communities and their projects include:
Village of Abbey: Updating the only playground facility in town to create a safe and accessible space for children to play. Town of Birch Hills: Assisting in the construction of a new golf clubhouse to promote golf activities and host tournaments. File Hills Qu'Appelle Tribal Council: Enhancing the Field of Dreams ball diamonds to support traditional ceremonial functions, with upgrades to the bleachers and branding of the facility.
Town of Langham: Constructing a warm-up shelter and first aid station for the River Ridge Nordic Ski Club, established in 2021 to provide outdoor recreational opportunities during the pandemic. Town of Marshall: Upgrading the community rink to create a year-round facility, with larger change rooms, better accessibility, and repairs to players' benches and boards. Town of Whitewood: Purchasing a new Zamboni for the local arena, ensuring the continuation and development of the community's recreational opportunities.
Richardson Pioneer recognizes that our employees and their families are an integral part of the communities where we operate. As a responsible corporate citizen, we are committed to making a positive difference in these areas in the long term. By supporting initiatives that enhance these communities, we aim to create a more prosperous and sustainable future for everyone. Our goal is to continue working alongside community members to create lasting impacts that benefit the places we call home.
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Growth and Expansion Richardson provides preferential consideration to local businesses, contractors, and labour when undertaking capital projects. We believe this approach is integral to building and strengthening relationships and providing community businesses with opportunity and experience. Richardson’s construction services contracts require our contractor partners to maximize the use of local goods and services through the preferential treatment of local-based suppliers, wherever possible.
Local Contracts for Site Work, Excavation, and Concrete in 2022
Alberta ~$181 M
Manitoba $2 M
British Columbia $14 M
Saskatchewan $5 M
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VALUES in ACTION Building a World Class Product Development and Innovation Centre in the Heart of Downtown Winnipeg
The Richardson Innovation Centre is dedicated to research and innovation in the agricultural and food industry. With the goal of building an exceptional environment that embodies the organization’s identity, Richardson turned to local Manitoba talent to create a space the company is proud to extend to customers, partners, suppliers, and employees.
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Richardson Innovation Centre The facility features cutting-edge laboratories, pilot plants, and testing facilities that facilitate the development and demonstration of novel products and technologies related to food processing, quality assurance, and food ingredients, among others. Collaborating with industry partners, customers, and academic institutions, the team’s mission is to drive innovation in product development within the core commodities handled by Richardson's business. In a bid to support and showcase the wealth of talent in Manitoba, Richardson partnered with local design firms, Number Ten Architecture and Bockstael Construction, to create a building that reflects the downtown Winnipeg culture and historical surroundings. The facility design features and materials were locally sourced to complement the region's architectural heritage.
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Information Technology – Donations and Recycling Programs Repurposed company computer equipment is regularly donated to: • Schools, colleges trade programs, and community centres • Community assistance programs • Richardson employee family members
Recycling Partner Programs
Units Donated
Electronic Recycling Program Non-profit organization committed to reducing unnecessary electronic waste through recycling and repurposing used electronics Reclamation Centres Richardson maintains relationships with major reclamation centres across Western Canada to safely and securely repurpose IT equipment
PCs
PCs
Cellular devices
Mobile equipment
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2.0 | Operational Safety and Emergency Preparedness
Relevance to Our Business Ensuring the health and safety of our network is our number one priority and preventing workplace injury is our most important goal. We could not accomplish the work we do without the support and commitment of our people, and the understanding of their families at home. It is Richardson’s responsibility to outline, and consistently assess our highest-risk work environments, and educate and train our personnel to perform their duties in the safest and most responsible manner possible. Every Richardson operating facility has a dedicated safety representative and/or workplace health and safety committee , whose objective it is to assist management in meeting the operational hazard precaution and safety obligations of the company. This includes facilitating a safe work culture. The roles and responsibilities of these personnel are defined by Richardson’s corporate policies. This knowledge is maintained through regular training programs.
Actions
Annual Occurances
On-site job observations
~14,000+
New employee and/or ongoing compliance training
1,500+ sessions
E-learning training sessions
Frequent and ongoing
Incident forecasting activities
12x/year/facility
Environment, health, and safety-related risk assessments
Frequent and ongoing
Never miss reporting investigations and corrective action planning
Ongoing
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Actions and Impacts A Culture of Safety
Emergency Preparedness
Richardson values a safe work culture. We set strict processes for inspections, training, and overall safety management at all of our facilities and encourage employee participation and accountability. Our management teams lead by example, showing their commitment to safety through their actions and we facilitate regular safety committee meetings and recognition programs for safety champions across the network.
Mitigation Measures
Richardson Response
Lost Time Injury Frequency Ratio 0.15 PER 100 CANADIAN EMPLOYEES
OUR SAFETY INDEX
Recovery Process
* National average Lost Time Injury Frequency Ratio is 1.75 per 100 Canadian workers (Association of Workers Compensation Board of Canada, 2021)
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Empowering Safety Culture Our ongoing Safety Starts with Me campaign focuses on building employee awareness about Richardson’s safety culture. The campaign underscores the expectations we have about personal accountability in promoting a safe work environment. We share safety training messaging through the following channels on a regular basis: • Training webinars • Internal communications plans • Messaging on our facility digital signage • External customer communications
Emergency Preparedness Emergency preparedness is
paramount to our grain handling and food processing businesses and forms the foundation of our emergency response strategy. In the unlikely event of an emergency situation, our network is trained to employ the most effective response efforts to mitigate impacts to employees, the general public, the environment, business operations, and assets and equipment. We regularly evaluate and challenge our emergency response capabilities and resources through scheduled training exercises.
We commit to building strong partnerships with local first responders in the communities in which we operate, and work closely with these emergency
response services teams to train in the knowledge required to operate efficiently within Richardson facilities.
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VALUES in ACTION Richardson and STARS Air Ambulance partner to conduct simulated safety exercises, aimed at ensuring Richardson teams are well-trained in crucial life-saving actions in the event of an emergency. These exercises take place across our operational network in the Prairie Provinces every year, enhancing employee preparedness
and location-based safety measures. Since 2019, Richardson International, in
collaboration with James Richardson & Sons Limited and affiliated companies, has donated over $2 million to STARS Air Ambulance. The essential care provided by STARS is particularly crucial in the rural areas where many of our employees and customers reside. Richardson is proud to partner with STARS to further their mission of delivering life-saving care.
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3.0 | Quality Assurance, Food Safety, and Regulatory Compliance
Relevance to Our Business The Richardson brand has a long-standing reputation as a producer and supplier of high-quality, food safe products to the world. It is Richardson’s priority to protect consumers from health risks related to the handling, processing, and packaging of food-grade products. We implement rigorous quality assurance and food safety protocols and practices – backed by data, science, and innovative technology – and put them to the test through regular internal assessments and audits. We do this to ensure we remain a company in which people can place their trust. Our corporate quality assurance and food safety team: • Is specialized in food sciences and food chemistry, microbiological sciences, and grain grading. • Maintains compliance with domestic and international food safety specifications, standards, and laws. • Maintains compliance with commercial quality and food safety specifications. • Ensures the grains, oilseeds, and food products Richardson supplies to end-use domestic and international customers comply with all applicable commercial and regulatory quality, functionality, nutritional, and food safety standards. • Collaborates with Richardson's stakeholders - including operations, sales and merchandising, procurement, transportation, insurance, legal, environment, health, and safety (EH&S), and corporate communications - to develop and maintain standards for product development and ensure safety, integrity, and consistency of products. • Represents Richardson on industry, regulatory, and market-access committees, where they lend their expertise in the areas of food quality and food safety.
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