2022 MATERIALITY ASSESSMENT REPORT

Helping us focus on the right areas

2022 Materiality Assessment Report

Our First ESG Materiality and Prioritization Assessment

In 2022, we developed our first materiality and prioritization assessment to identify key Environmental, Social, and Governance (ESG) topics important to both our business and our stakeholders. From our previous Corporate Social Responsibility (CSR) report in 2018, the move towards an ESG approach reflects the fact that material issues are broader in nature and require a more aligned data driven approach with metrics and associated actions. Addressing the material topics is essential for the growth of the organization and acts as a force to further integrate them into business operations to support our continuous improvement efforts. Furthermore, the materiality assessment guides our strategy, helping us to focus on the right areas and ensuring that we continue to work on the sustainability topics that are important to our stakeholders.

Methodology

Multiple steps were followed in the Materiality Assessment process. Again, the main objectives of this exercise were to identify, assess, and prioritize potential material topics for Idaho Milk Products and our stakeholders.

Firstly, we conducted desk research to identify a comprehensive list of ESG material topics relevant to the broader dairy processor industry. We aligned our list with the Materiality Guide of the Innovation Center (IC) for U.S. Dairy to build a foundation and subsequently identify the most relevant topics for Idaho Milk Products.

As an adoptee of the Stewardship Commitment and an active member of the Sustainability Alliance with the IC for U.S. Dairy, our affiliation leverages and aligns associated Dairy Sustainability Framework (DSF) global criteria, Global Reporting Initiative (GRI) standards, the United Nations Sustainable Development Goals (SDGs), and Sustainability Accounting Standards Board (SASB) material topics for food and beverage. Internal workshops were conducted with our Sustainability Team to examine the material topics. The team consisted of twelve members from various departments of the company who have in-depth knowledge of the day-to-day operations of the business. This process led to defining and consolidating 20 material topics that best fit with our operations across our entire supply chain. Definitions of all our material topics are provided in the “How We Define Our Material Topics” section.

Methodology

Multiple steps were followed in the Materiality Assessment process. Again, the main objectives of this exercise were to identify, assess, and prioritize potential material topics for Idaho Milk Products and our stakeholders.

Firstly, we conducted desk research to identify a comprehensive list of ESG material topics relevant to the broader dairy processor industry. We aligned our list with the Materiality Guide of the Innovation Center (IC) for U.S. Dairy to build a foundation and subsequently identify the most relevant topics for Idaho Milk Products.

As an adoptee of the Stewardship Commitment and an active member of the Sustainability Alliance with the IC for U.S. Dairy, our affiliation leverages and aligns associated Dairy Sustainability Framework (DSF) global criteria, Global Reporting Initiative (GRI) standards, the United Nations Sustainable Development Goals (SDGs), and Sustainability Accounting Standards Board (SASB) material topics for food and beverage. Internal workshops were conducted with our Sustainability Team to examine the material topics. The team consisted of twelve members from various departments of the company who have in-depth knowledge of the day-to-day operations of the business. This process led to defining and consolidating 20 material topics that best fit with our operations across our entire supply chain. Definitions of all our material topics are provided in the “How We Define Our Material Topics” section.