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COUNTER CULTURE DIRECT TRADE CERTIFICATION GROWTH OF ORGANIC COFFEE SALES SEEDS FOOD SECURITY PROJECT OUR LOCAL COMMUNITIES THE GREEN FUND

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SUSTAINABILITY ANNUAL REPORT COUNTER CULTURE DIRECT TRADE CERTIFICATION 2 In early 2008, as we compiled data for Counter Culture s first Sustainability Scorecard, we wondered whether the information
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SUSTAINABILITY ANNUAL REPORT COUNTER CULTURE DIRECT TRADE CERTIFICATION 2 In early 2008, as we compiled data for Counter Culture s first Sustainability Scorecard, we wondered whether the information would be interesting to anyone besides us. Some of the metrics in that first report, like the percentage of certified organic coffee we purchase, have continued to grow in relevance, whereas other metrics, like the percentage of delivery fuel replaced by biodiesel, have become obsolete. In spite of metrics that have not stood the test of time, the act of measuring our progress and reporting on it publicly has become more and more integral to who we are as a company and how we define sustainability. Six years later, we hope that our Scorecard has proven to be interesting, and we look forward to its continuing evolution as we learn, focus, and grow. GROWTH OF ORGANIC COFFEE SALES SEEDS FOOD SECURITY PROJECT OUR LOCAL COMMUNITIES THE GREEN FUND OUR GREENHOUSE GAS FOOTPRINT HOW WE OFFSET OUR FOOTPRINT SAVE OUR SOIL 2012 SUSTAINABILITY SCORECARD COUNTER CULTURE DIRECT TRADE CERTIFICATION ,012,500 Counter Culture Direct Trade Certified coffees are a diverse bunch we source these coffees from small farms and large farms alike in dozens of countries scattered across the major coffee-growing regions of the world so it s hard to make generalizations. Likewise, whether we re talking about a decade-old relationship or a brand-new supplier, we want to share the unique and special features of each one. Transparency has been a tenet of CCDTC since we created the program in 2008, and we ve always been committed to sharing the prices we pay for our coffees, which explains why we re presenting the 2012 weighted average (weighted by volume purchased) here. In 2010, we began publishing a Direct Trade Transparency Report to help give context to raw numbers, and we hope we have piqued your interest enough that you will read the 2012 version for more information and stories to complement price data ,500 GROWTH IN LBS. OF COUNTER CULTURE DIRECT TRADE COFFEE PURCHASED $ 3.99 WEIGHTED AVERAGE PRICE FOR COUNTER CULTURE DIRECT TRADE CERTIFIED COFFEE IN 2012 GROWTH OF ORGANIC COFFEE SALES 68% 69% 77% 80% 83% ACTUAL 66% 75% PERCENTAGE OF ORGANIC COFFEE SOLD AS CERTIFIED ORGANIC i.e. not blended with conventional coffee PERCENTAGE OF COFFEE PURCHASED FROM CERTIFIED ORGANIC FARMS 2 SEEDS SEEDS: SUSTAINING EDUCATIONAL AND ENVIRONMENTAL DEVELOPMENT AT SOURCE Our Seeds program was created to support our supply chain partners. Since January of 2011, we ve funded roughly one project every 3 months by earmarking a penny of every pound of coffee we purchase. Projects have included agricultural training programs, research projects, and a food security initiative, among others. FOOD SECURITY PROJECT FABRETTO CHILDREN S FOUNDATION AND CINCO DE JUNIO COOPERATIVE, NICARAGUA $25,000 Training coffee farming families in fruit and vegetable production to diversify nutrition and income and drip irrigation to increase efficiency of water use. This project has been very positive for our family. We have started growing new crops on our small farm, and we are learning new ways to improve our production. This has helped us to generate more income for our family, and we can better provide for our children. Amparro Gutierrez, participant $22,500 ACTUAL DOLLARS TO COMMUNITY AND QUALITY DEVELOPMENT PROJECTS AT ORIGIN 3 THE GREEN FUND OUR LOCAL COMMUNITIES In each region where we live and work, we value the ability to support the work of local organizations especially when those organizations are involved in sustainable agriculture and hunger prevention efforts, issues that tie in with ones coffee producers face around the world. In 2012, we partnered with SEEDS, a non-profit in Durham, NC, that teaches respect for life, for the earth, and for each other through gardening and growing food. This year, we brewed coffee to accompany delicious pies at their 4th Annual Pie Social. The SEEDS Pie Social benefits the Durham Inner-city Gardener Program, a youth-driven entrepreneurial and leadership program. Approximately 400 people attended. ACTUAL $61,569 In 2011, our Sustainability Committee introduced the Counter Culture Employee Green Fund, which offers each employee the opportunity to apply for up to $500 a year in matching funds toward a personal sustainability-related project. Projects have included gym memberships, a rain-water garden irrigation system, home fitness equipment, and more. I am not a gardener, admits Atlanta Wholesale Sales Representative David LaMont. At best, my thumbs are the pale green of dead grass. That lack of aptitude didn t stop David from applying for Counter Culture s employee matching Green Fund program to buy cedar planks and posts to build raised garden beds in the yard of his Sugar Hill, GA, home to spend more time outdoors with his kids and to grow a bit of their own food. I was a little late in getting everything built and planted, David acknowledged, but with the mildest spring in recent memory, we ve been able to harvest a few snacks from the garden. $ 3,761 DOLLARS ALLOCATED BY THE GREEN FUND IN 2012 $40,000 DOLLARS AND IN KIND DONATIONS TO COMMUNITY ORGANIZATIONS IN THE U.S. 4 OUR GREENHOUSE GAS FOOTPRINT SCOPE 1 DIRECT EMISSIONS ATL CHI SCOPE 2 PURCHASED ELECTRICITY HEADQUARTERS ASH PHL SCOPE 3 EVERYTHING ELSE Flexible and unregulated DC NYC CCC-OWNED CARS (8) And other company trips/fuel ROASTERS (3) Propane and CNG BOS AIR TRAVEL UPS EMPLOYEE COMMUTING EMPLOYEE COMMUTING Domestic and International Shipment to customers Reduced/zero emissions.92 LBS. CO2 LB. COFFEE GHG FOOTPRINT PER POUND OF COFFEE SOLD GHG TOTAL IN TONNES CO2e HOW WE OFFSET OUR FOOTPRINT In 2012, we worked with Trees, Water, and People to offset our 2011 carbon footprint by connecting them with our partners at the Café Orgánico Marcala (COMSA) cooperative of Marcala, Honduras, to build fuel-efficient stoves in the homes of grower members. In all, 626 family members of COMSA producers in and around Marcala benefit from cleaner indoor air, more disposable income, and will use less than half the wood required by their former cookstoves. Over the lifespan of these cookstoves, 645 tons of CO2 will be avoided, reducing the amount of hazardous greenhouse gases in our global atmosphere. A similar offset will be will be arranged for our 2012 footprint. 5 21 EDUCATIONAL WORKSHOPS HOSTED 32 GROWERS TRAINED IN COMPOSTING WITH THE DONATION FROM OUR HOLIDAY BLEND SAVE OUR SOIL Save Our Soil is a step in a new direction for us: we are taking action as a business and as individuals, and encouraging others to do the same, to support organic and sustainable agriculture because we recognize that healthy soil is fundamental to producing quality coffee. As a tangible demonstration of our commitment to building soil, we set up worm composting in six of our eight training centers and use California redworms the same kind of worm used by coffee growers we work with worldwide to help us turn food scraps and coffee waste into rich, nutritious compost for our gardens. 138 PETITION SIGNATURES PETITIONERS AGREED TO: 1 Demand organic coffee. 2 Choose milk and food from small, organic farms. 3 Learn about organic agriculture in their community. 4 Compost coffee and food waste. 5 Support pro-organic legislation. 6 2012 SUSTAINABILITY SCORECARD OUR S KEY PERFORMANCE INDICATORS ACTUAL 2013 ENVIRONMENTAL SUSTAINABILITY Promote Healthy Farms and Forests Percentage of coffee purchased from certified organic farms 77% 80% 83% Percentage of organic coffee sold as certified organic (i.e. not blended with conventional coffee) 52% 68% 75% 66% 75% Zero Landfill Waste Reduction in paper use from 2011 level 0% 30% 2% 25% Reduce Energy Consumption Reduction in electricity use from 2011 level 8% Reduction in transportation footprint (including air, rail, and auto travel, as well as employee commuting) from 2010 level 13% increase 18% SOCIAL SUSTAINABILITY Build Strong Supplier Relationships Percentage of long-term farmer partners visited by CCC 82% 89% 79% Percentage of long-term farmer partners Very Satisfied with CCC 89% 97% Percentage of coffee purchases Counter Culture Direct Trade Certified 37% 50% 68% 58% 70% Support Our Communities Dollars to community and quality development projects at origin $9,800 $21,100 $25,000 $22,500 $25,000 Dollars and in-kind donations to community organizations in the US $34,600 $60,629 $40,000 $61,569 $50,000 Dollars distributed through the Employee Green Fund $5,000 $3,761 $5,000 Employee Appreciation CCC Overall Employee Retention Rate 97% 84% Percentage of Employees Very Satisfied with CCC 54% 80% 72% Customer Relationships Percentage of Customers Very Satisfied with CCC 79% 80% 94% FISCAL SUSTAINABILITY CCC Dollars distributed through profit sharing program $68,000 $63,178 $90,000 $76,158 $90,000
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