Introduction

ESG Governance: Sunny Sky Products has implemented policies and operational controls for environmental, health, safety, and social risks. The goal is to focus on indicators that address our approach towards responsible investment, sustainability, our impact on society and the environment, as well as other ethical and corporate governance considerations.

ESG Commitment: Sunny Sky Products strives to build sustainable, equitable, healthy, and diverse communities through environmental, social and governance (ESG) performance.

1. Environmental

1.1. Overview: We believe we have a responsibility to minimize the energy, carbon, and waste impacts of our business and recognize that these impacts occur not just in the daily operations of our business but also through our entire value chain. We aim to contribute to the reduction of single use plastic by focusing most of our operations on dispensed concentrated beverage products. Where possible, we partner with vendors who minimize their environmental impact and carbon footprint through initiatives such as renewable energy procurement and recycling.

1.2. Statement on Climate Change: We are committed to driving down our energy and carbon impacts by combining shipments into single truck loads. We partner with a vendor who helps us consolidate our shipment needs by ensuring we are reducing our carbon footprint. Our central locations enable efficient distribution to core geographies. By operating in two facilities, we shorten the average distance to customers resulting in lower carbon footprint.

1.3. Corporate Office: Although the environmental impacts of our corporate operations are a small part of our overall footprint, we believe it is important to live our values. As a result, we have adopted sustainability policies for our HQ that include criteria such as energy-efficient appliances, water-efficient fixtures, and a paper recycling program.  We also provide education to employees on printing only when necessary to do so.

2. Social Responsibility

2.1. Overview: A deep commitment to social responsibility is core to who we are as a company. We believe people are at the heart of our business and take pride in our outstanding work culture. We strive to be an optimal employer to our workforce and provide an environment that is conducive to both personal and professional growth.

2.2. Compensation and Benefits: We know that the first step in hiring and retaining the best talent is to create safe and inspiring workplaces where people feel valued. We offer competitive compensation and benefits to our employees, including but not limited to paid holiday, personal time off, retirement savings plans and medical, dental, and vision coverage. We also offer 100% employer paid STD and LTD benefits, 100% employer paid $25k life insurance, HSA plans, FSA plans (medical, limited purpose and dependent care), referral bonus, attendance monthly bonus, maternity leave, paternity leave, $70 annual allowance towards work shoes, optional cancer coverage, optional hospitalization coverage, optional critical illness coverage, and optional accidental coverage.

2.3. Culture, Engagement and Growth: We create fun, spirited work environments that reward innovation and collaboration at all levels. Every new employee is given a copy of our Employee Handbook. In the Employee Handbook you can find that Sunny Sky Products has a policy prohibiting sexual harassment in the workplace. This policy applies to all employees of the Company, including supervisors, managers, and executives. Sunny Sky Products strives to maintain a workplace free of harassment and is sensitive to the diversity of its employees.  Leaders are encouraged to demonstrate an “open door policy” and employees can provide feedback through their annual performance reviews. We hold periodic employee appreciation events such as holiday, and thanksgiving luncheons.  We also believe communication is important and therefore we hold our annual “state of the company” update that we provide to all personnel. We aim to foster both personal and professional growth for employees at all levels of the organization through annual performance reviews, role-specific training, and professional development opportunities.

2.4. Health and Safety: We adhere to following health and safety standards across both of our manufacturing facilities as well as conduct annual ongoing safety training throughout the year. Additionally, we offer semi-annual First Aid, CPR & AED certifications to employees and leadership team. The health and safety of our employees and vendors is of the utmost importance to us.

2.4. Health and Safety: We adhere to following health and safety standards across both of our manufacturing facilities as well as conduct annual ongoing safety training throughout the year. Additionally, we offer semi-annual First Aid, CPR & AED certifications to employees and leadership team. The health and safety of our employees and vendors is of the utmost importance to us.

2.5. Diversity and Inclusion: Sunny Sky Products is an Equal Opportunity Employer, employment decisions at Sunny Sky Products are based on merit, qualifications, and abilities. Sunny Sky Products does not discriminate in employment opportunities or practices on the basis of race, color, sex, national origin, age, sexual preference or any other characteristic protected by law. We embrace and value diversity in all its forms as we aim to develop a community of diverse talent. We seek to maintain a positive workplace, free from discrimination and harassment. We champion pay equity and mutual respect, promoting an environment of fairness and equality. Our commitment to diversity and inclusion applies to the highest levels of the organization, including our executive team, where we recognize that diversity strengthens performance and promotes long-term shareholder value.

2.6. Strengthening our Communities: We have a long history of providing meaningful, and often transformational, support to the communities in which we operate. We recently started a policy to allow every employee a day of volunteering at their charity of choice. We believe this helps strengthen our communities and give us a sense of self. As a company we participate in an annual holiday food drive to assist our local Houston food bank.

3. Governance

3.1. Overview: We view governance and transparency as essential to creating and preserving value for our shareholders and other stakeholders. This includes a sound approach to corporate governance that complies with all applicable laws, rules, regulations, and policies as well as unwavering adherence to our values.

3.2. Holding Ourselves Accountable

3.2.1. Corporate Governance: We have an effective and highly skilled Board of Directors. We promote board independence and embrace board diversity in all its facets, including skills, experience, gender, ethnicity, and race. Our Corporate Governance Guidelines outline key principles and rules to help our Board of Directors exercise its responsibilities and serve the interests of the company and its stockholders.

3.3. Doing what’s Right

3.3.1. Ethics: Our directors and all employees, including senior management, conduct themselves in accordance with the highest moral and ethical standards. We are committed to ensuring a fair workplace for our employees as well as partners with whom we do business. We have an Open-Door Policy to encourage honest and direct communication to resolve issues and concerns in an expeditious manner.

3.3.2. Human Rights: Our Human Rights Policy reflects our longstanding dedication to the preservation of basic rights and human dignity in our workplace and beyond. We uphold principles that support and protect human rights. The policy applies to our operations and affiliates in all assets we own and operate.