Corporate Citizenship & Sustainability ReportF

Y20

17

SAVING UGLY FRUIT SINCE 1960!In 1960, Tree Top was founded as a grower-owned agricultural cooperative to take the excess, unattractive fruit from our growers’ orchards and turn it into healthful fruit products for the marketplace. For nearly six decades Tree Top has been saving ugly fruit from landfills by using it to produce a wide array of premium fruit products such as apple sauce, purees, juice, and dried ingredients.

People around the globe now enjoy our fruit products!Over the years, the Cooperative used its fruit expertise to expand into other fruits and fruit product offerings. With production facilities located near the farms of growers we know and trust, Tree Top now offers the widest array of fruit products available from a single source. The company produces, markets, and sells products to consumers through retail stores and to the foodservice industry. The company also produces fruit ingredients for the world’s leading global food manufacturers. Consumers in 20 countries around the world enjoy Tree Top’s fruit in a wide range of products including things like cereals, toaster pastries, dairy snacks, baby food, apple sauce, and juices.

VISIONYour first-choice fruit company.

Everyone deserves good food, and we know good food means more than great taste!

GOOD VALUES

EMPOWERMENTWe promote a culture of continuous improvement and innovation where employees are encouraged to challenge the status quo and accept accountability for results.

INTEGRITYWe do the right thing, communicating openly and honestly, exhibiting behaviors consistent with our words.

QUALITYWe are committed to quality – the quality of our products, services, and our way of doing business.

RESPECTWe build strong relationships by valuing each other’s experience, opinions, and diversity.

RESPONSIBILITYWe are committed to making a positive impact on our community and environment.

UNITYOne mission, one team, one Tree Top.

OUR OPERATIONSTree Top’s headquarters are in rural Selah, Washington, in the heart of Washington’s apple country. The Cooperative operates seven fruit processing facilities close to various fruits from trusted growers. We use approximately 450,000 tons of all types of fruits annually to feed the world good food.

OUR SUSTAINABILITY EFFORTS Our goal is to be as transparent as possible, and to continue improvements in the reduction of Tree Top’s environmental impact. This annual report is just one method of sharing our goals and progress with stakeholders.

We began measuring and tracking our progress to reduce energy, water use, and carbon emissions in 2009 and published our first annual report that year. Because each of our seven production facilities produces different finished goods, we established our Sustainability Index to measure the consumption of resources versus each facility’s yield or number of units produced (pounds, cases, etc.). By using a Sustainability Index we are able to capture all the data and create an overall production Sustainability Index to reflect our total company impact and progress.

This abbreviated report reflects the total manufacturing Sustainability Index for the past five years. Individual facility charts are available in a comprehensive report which meets global reporting standards. Tree Top also reports information through the Carbon Disclosure Project (CDP), an organization working globally to reduce climate impacts and other harmful environmental impacts through transparent reporting, measurement, and scoring. Global manufacturers and others use the CDP information to evaluate their supply chains’ impact and to establish targets for suppliers.

Tree Top voluntarily undertakes Ethical Trading Initiative audits conducted by certified third party auditors to measure against the SMETA Pillars 4 international standards for issues related to labor practices, health and safety, environmental impact, and community support. Sharing audit results on the Sedex global reporting system allows our retail and ingredient customers easy access to important information.

You’ll find our products sold in more than 20 countries across the globe.

REPORT ON PRIMARY AREAS OF INTEREST

CERTIFIED SUSTAINABLE: STRAWBERRY, RASPBERRY, BLUEBERRY, BLACKBERRYAND CHERRY FARMSUnilever’s Sustainable Agriculture Code is renowned globally as one of the most stringent codes related to sustainable growing. With guidance from Tree Top’s trained specialty fruit procurement staff, our growers have obtained the prestigious certificate of compliance, with the Unilever Sustainable Agriculture Code.

PRODUCINGMORE WITH LESS Our Sustainability Index reflects the total amount of fruit product yields (pounds, cases, or fruit solids) produced at each facility compared to the amount of key resources used. Each facility produces different fruit products and therefore uses different processes. The Sustainability Index measures progress against a baseline year established in FY2009.

Our goal is to produce more (increase yields) while using fewer resources. It’s always a challenge, especially in an agricultural business like ours, as fruit supplies vary in quantity and quality every season.

1. REDUCE WATER AND WASTEWATERHandling approximately 450,000 tons of fruit each year requires a lot of water.

Reducing water use and returning clean wastewater to the environment is critical, and we expect continual improvements at all locations.

As a result of concerted efforts and capital improvements we’ve reduced the use of thousands of gallons of water over the past five years.

2020 CSR GOALS(Baseline Year FY2016)

1. Reduce water use by 10%

2. Reduce energy use vs. yield by 10%

3. 100% participation in recycling

4. Implement an alternative method to dispose of fruit solid waste, such as feeding into methane gas production to fill pipelines

5. Improve data collection and accountability

6. Continued organizational education, and representatives from each facility added to the Corporate Social Responsibility Committee

2013

515,

610,

015

499,

695,

576

546,

901,

343

545,

625,

233

536,

602,

750

WATER CONSUMPTION IN GALLONS

2014 2015 2016 2017

TOTAL COMPANY SUSTAINABILITY INDEX

201380

85

90

95

100101

87

9189

105

2014 2015 2016 2017

99

REPORT ON PRIMARY AREAS OF INTEREST

4. SOLID WASTE/PACKAGING REDUCTIONTree Top continually works on light-weighting or reducing the amount of materials used to create packaging while maintaining the quality expected of a premium brand. Intentionally, all of our cans and plastic containers are recyclable. Our packaging is in compliance with U.S. and Canadian Food Packaging regulations.

With the addition of two new apple sauce packing lines over the past two years, Tree Top has been able to dramatically reduce the use of individual plastic cups previously used for packing single servings. The pouches have recyclable lids, and the pouch itself flattens entirely. Flatter packaging takes up less space in landfills.

REDUCING NATURAL GAS USE REDUCES CO2

2. REDUCEENERGY USE

3. RECYCLINGAll facilities actively recycle corrugated paper, metal, and plastic. In addition, the company is enrolled in the Staples Advantage program to recycle toners and ink, and bathrooms are stocked with Sustainable Earth products.

5. TRANSPARENCY AND CONTINUOUS IMPROVEMENT

• Annual Corporate Social Responsibility Report (since 2009)

• CDP Participant – to report and work with global manufacturers to reduce CO2 emissions

• Sedex Member with 3rd party audits to measure against global Ethical Trading Initiative Standards (SMETA Pillars 4) including: labor practices, health and safety, environmental impact, and community support

• SQF Level II at all facilities and approaching SQF Level III

• Unilever Muddy Boots participant –leading our berry growers in sustainable agriculture code certification

2013

56,8

48,9

83

53,5

84,5

29

59,7

46,3

69

56,9

91,0

65

51,5

77,5

42

ELECTRICAL CONSUMPTION IN kW HOURS

2014 2015 2016 2017

2013

55,8

53

54,9

47

61,3

19

59,3

90

55,7

03

GREENHOUSE GASES AS TONS OF CO2 EQUIVALENT

2014 2015 2016 2017

GOOD IS A SAFE WORKPLACEProviding a safe work environment and highly competitive wages and benefits for Tree Top’s employees has created a supportive and neighborly culture and earned the Co-op a very good reputation as a quality employer within our communities.

• Every production facility has an active safety committee.

• FY17 safety index = 11.24, which is nearly a 3 point improvement from the prior year, and considered a good score by national standards.

GOOD IS EMPLOYEE IMPACT ANDWELLBEINGVolunteer Time Off (VTO) was added to Tree Top’s competitive wages and benefits in FY17 to encourage employees to give of their time and talent. Studies show volunteering has a positive impact on people’s emotional wellbeing.

Every full-time employee receives eight hours of paid time off per year to volunteer their time to any qualifying charitable organization. Part-time employees receive a proportionate amount of VTO.

ETHICS & CODE OF CONDUCTTree Top maintains a formal Code of Conduct which is published in the company’s Employee Handbook. The Code of Conduct was prepared using examples from some of the world’s leading food manufacturers’ Codes of Conduct. It includes many international standards related to business ethics, labor, financial transactions, environment, community support, etc.

An Ethics Hotline was established in 2013 for ease in reporting any potential violations or concerns.

Voluntary, third party audits have been undertaken at each manufacturing facility beginning in 2013. The audits compare labor practices, environment, health and safety, and our Code of Conduct against the United Nation’s Ethical Trading Initiative standards. Results are published for full disclosure on the global reporting site for ethical supply chain management – Sedex.

GOOD WAGES, BENEFITS,AND OPPORTUNITIESTree Top is an Equal Opportunity/Affirmative Action Employer (EEO) providing gainful employment in a wide range of fields from engineering and technical support to manufacturing to sales and marketing. We participate in an annual audit and complete an Affirmative Action Plan in compliance with the Office of Federal Contract Compliance Programs (OFCCP), Department of Labor.

Workforce Highlights:

• 1,036 employees

• EEO compliant

• Our minimum wage is 41% is above the federal minimum level

• 89% of our employees are enrolled in our highly competitive medical, dental, vision, and prescription drug benefit program, greatly subsidized by Tree Top

• Our free wellness program provides biometric screenings, health risk assessments, counseling, a 24-hour Teledoc service, mini-challenges, and financial incentives to improve employee health and wellbeing

Wages and Benefits: Benefit and compensation reviews are completed bi-annually by Towers Watson, a global consulting firm in human capital and financial management, and changes are made accordingly to ensure we remain competitive.

• Medical, Dental, Vision, and Prescription Drug Coverage

• Life Insurance

• Accidental Death and Dismemberment Coverage

• Short-Term and Long-Term Disability

• 401K Plan

• Employee Assistance Program

• Ten Paid Holidays

• Vacation/Paid Time Off

• Volunteer Paid Time Off

• Education Reimbursement

• Wellness Program

• 24/7 Teledoc Service

Since the inception of an employee wellness program, employee health risk data has been collected and evaluated annually. As a result, additional financial incentives are introduced to encourage employee weight loss, improved disease management and counseling, and disease risk management. Employees receive awards on a Health Savings Account debit card, including rewards for participating for multiple years in the wellness program.

2016WASHINGTON STATE COMMUNITY IMPACT AWARD WINNER

GOOD IS GIVING$396,642 IN CASH AND PRODUCT DONATIONS

GOOD DEEDS RECOGNIZED BY OTHERS:• 2017 United Way of Central Washington Volunteers of the Year

• 2016 Washington State Community Impact Award Winner

• 2015 Washington Food and Beverage Processor of the Year – as named by a committee of manufacturing experts

• Past winner and recently nominated and recognized again for the National Association of Secretaries of State Medallion Award for Corporate Citizenship – the highest honor a Corporation can receive for such

• 2012 Washington Green Award – Silver Category for Agricultural Business Sustainability Efforts

FOR INFORMATION ABOUT THIS REPORT OR TO REQUEST ADDITIONAL COPIES PLEASE CONTACT:

Corporate Communications Director, Tree TopPO Box 248 | Selah, WA | 98942-0248(509) 697-7251 | www.treetop.com

GOOD IS:Donating more than $350,000 per year on average in cash and products to benefit more than 150 charities, schools and hospitals.

Providing employees eight hours annually of paid Volunteer Time Off (VTO) to volunteer at a charitable organization.

Supporting employees who organize internal campaigns to raise funds for Children’s Miracle Network and the United Way every year.

Supporting employees who treat approximately 100 foster children and their families each year to a Christmas party complete with gifts, games, family photos, crafts and food, and of course, a visit from Santa.

Implementing a Home for Homeless Fruit program to take fruit ingredients, such as peach puree too thin for a customer’s needs and destined for disposal, and turn it into a tasty blend of pure fruit for packaging into squeeze tubes. More than 200,000 fruit tubes for children were distributed to food banks.

CARING IN ACTION