Download our 2014 Corporate Sustainability Report

Sustainability Report 2014

2 Simple Green 2014 Sustainability ReportCEO statement...............................................4Overview..........................................................6 Our Business Governance & Ethics About this ReportSustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Simple Green AustraliaEmbracing Our Future.................................46GRI Content Index.........................................48Assurance Statement..................................54

Table of Contents

CEO statement...............................................4Overview..........................................................6 Our Business Governance & Ethics About this ReportSustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Simple Green AustraliaEmbracing Our Future.................................46GRI Content Index.........................................48Assurance Statement..................................54

3Simple Green 2014 Sustainability Report

CEO Statement..............................................4Overview..........................................................6 Our Business Governance & Ethics About this Report About GRISustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Distributor Spotlight Simple Green Australia...............................46Embracing Our Future.................................48GRI Content Index.........................................50Assurance Statement..................................55


CEO Statement

Dear Friends,

Since the founding of Simple Green® over 39 years ago, our family of Sunshine Makers has witnessed a tremendous evolution in socio-environmental regulations, consumer behavior and corporate priorities. And we, too, have evolved. The year 2013 marks a transformational milestone in the history of our company with regard to sustainable business practices. While our mission has embraced corporate social responsibility and environmental consciousness since 1975, we recognize that the future of our business depends on the implementation of decisions that effectively and consistently drive net-positive impact on society and the environment.

In that spirit, we launched a formal sustainability program that reaches beyond the core operation of our business and seeks to understand and improve the many layers of our value chain. This increased focus on supplier sustainability seems especially relevant in light of feedback from our stakeholders, a comprehensive materiality assessment, and our commitment to adhere to the principles of the UN Global Compact. Fully aligning corporate culture, collaboration and optimal integration of performance metrics present challenges we are eager to tackle over the next three years.

As we continue to value the entrepreneurial spirit that has shaped our culture over the years, we also recognize that effective sustainability management requires a structured approach, subject matter expertise, benchmarking, and collaborative stakeholder engagement. These are the areas we have focused on throughout this reporting period and we are confident that our initial efforts will help us achieve our long-term objectives, including gaining

an in-depth understanding of our product lifecycle, material optimization, realization of additional operational efficiencies through joint efforts with our business partners, proactive management of occupational health & safety and labor rights throughout our supply chain, and the expansion of our non-profit foundation, EGBAR (“Everything’s Gonna Be All Right”) for environmental education and community improvement projects.

We may not be a large company, but we recognize our contribution to climate change from the sourcing, manufacture, and distribution of our products and from other business activities. With headquarters in Southern California, we are also acutely aware of the risks associated with water scarcity. In order to ensure long-term economic stability and growth, we know we have to address these challenges as we move forward. While we are pragmatically optimistic, we cannot do it alone. It is our hope that this report will serve as a starting point for discussion and engagement to elevate and expedite our continuous improvement efforts. We welcome your questions and feedback and invite you to engage with us in a conversation about our collective future.

EGBAR,

Bruce P. FaBrizioInventor, President & CEO



“While our mission has embraced corporate social responsibility and environmental

consciousness since 1975, we recognize that the future of our business depends on the

implementation of decisions that effectively and consistently drive net-positive impact on

society and the environment.”


Overview

“At Simple Green, we continue to drive toward safer alternatives in cleaning

while integrating sustainable initiativesin packaging and business practices.”

- Jeff Hyder, SVP of Sales & Operations



Manufacturers

Garden Grove, CaliforniaChino, CaliforniaSan Marcos, CaliforniaSylacauga, AlabamaOlive Branch, MississippiMilwaukee, WisconsinHolland, MichiganWiscasset, MaineLawrenceville, GeorgiaRydalmere, AustraliaBernberg, Germany

You may know us best as Simple Green, but in 1981, Bruce FaBrizio renamed his company Sunshine Makers, Inc. (SMI) and that is who we still are today – the Sunshine Makers.

Our headquarters is located directly on the famous Pacific Coast Highway in “Surf City USA,” Huntington Beach, California. We maintain satellite offices in Chicago, Illinois and Bentonville, Arkansas and for the reporting period, our products were contract manufactured in eleven facilities worldwide.

Our Business

Shaded areas represent 2013 Simple Green sales territories.

8 Simple Green 2014 Sustainability Report


Governance & EthicsSunshine Makers, Inc. is governed by a three-member Board of Directors consisting of the company’s CEO and two external officers. The board meets three times per year. A four-member team of company legacy staff, including the CEO, comprises the Executive Team responsible for decision-making on economic, environmental and social impacts. Our commitment to social well-being and the environment is embedded in our mission and guided by our Sustainable Business Policy, which stipulates compliance with the letter and spirit of the law; a commitment to corporate social responsibility in the workplace, in our communities and in supplier organizations; as well as the implementation of environmental impact reduction initiatives in our operations, our products and throughout our value chain.

As a socially responsible company, Sunshine Makers, Inc. iscommitted to being the worldwide market leader, providing high

quality, environmentally safer cleaning products.

Simple Green products are distributed through an international network of contract transport and logistics providers. In addition, we operate warehouse space in Garden Grove, California and Choisy le Roi, France. Products manufactured overseas are only sold in their respective markets.

At the end of the reporting period, our team was 59 Sunshine Makers strong and we had recorded product shipments to distributors in 41 international countries with sales to end-users in approximately 100 countries worldwide. With the majority of our sales in the United States, we see continued growth in our international business. We have significant operations in Australia and the highest single-country international sales volume is generated in the Canadian marketplace.

Simple Green had its start as an industrial cleaner, first sold to JC Penney’s Automotive Department in 1976, but customer demand soon led to the establishment of a retail division. Our current portfolio of Simple Green –branded products consists of 72 items with the majority of sales still generated by the Simple Green All-Purpose cleaning formulation.

Sunshine Makers, Inc. is a privately held corporation and does not publicly disclose financial information.

Our Guiding Principles:

. Entrepreneurship

. Customer Focus

. Communication

. Commitment to Excellence

AsiaAUS/OCEANIAEMEANorth America (non-US)South-Central America

SMI 2013 International Sales Distribution

Household, Automotive, Hardware, e-Commerce, Club & DIY

Simple Green Product Categories

Industrial, Government& Commercial

7%16%15%36%26%

64%

36%



This is our first annual Sustainability Report, summarizing the 2013 calendar year. The GRI Content Index is available on page 50 of this document. We have chosen the “in accordance” core option following the G4 reporting guidelines, including external verification through ISOS Group, an independent provider of sustainability services. We believe that external assurance is a Best Practice and will continue to consider it as part of our annual reporting process. The assurance report can be found on page 55 of this document.

The content of this report was defined by multiple elements. They included (1) availability of data for the reporting period, (2) our current understanding of our value chain, (3) discussion with our stakeholders, (4) surveys of our stakeholders, (5) an aspect-impact analysis and (6) a materiality assessment. Our goal is to present a useful and accurate summary of our 2013 socio-environmental performance, to deliver an overview of our company that provides perspective with regard to our part in the wider context of sustainability, and to communicate the issues that matter to us, our customers, our business partners and our communities.

About This Report

Our SustainabilityReport

SustainabilityContextMateriality

Completeness

StakeholderInclusiveness

The Global Reporting Initiative (GRI) promotes the use of sustainability reporting as a way for organizations to become more sustainable and contribute to a sustainable global economy.

GRI’s mission is to make sustainability reporting standard practice. To enable all companies and organizations to report their economic, environmental, social and governance performance, GRI produces free Sustainability Reporting Guidelines.

GRI is a not-for-profit, network-based organization; its activity involves thousands of professionals and organizations from many sectors, constituencies and regions.

www.globalreporting.org Contact: [email protected]

About GRIPrinciples to Which we Subscribe


Sustainability Management

Approximately 95% of Simple Green® products are manufactured in ISO 9001

and ISO 14001 certified facilities.



Our company was founded on an entrepreneurial spirit that still defines our culture today. At the same time, we realize that building a sustainable organization requires a structured process for long-term planning, tracking and trending of metrics, ongoing observation and evaluation and targeted actions. Creating such a process is a challenge we enthusiastically embrace.

Sunshine Makers, Inc. (SMI) has chosen to follow the continual improvement framework adopted by the International Organization for Standardization (ISO) in its management systems standards and guidelines. Approximately 95% of Simple Green products are manufactured in ISO 9001 and ISO 14001 certified facilities. Several of our business partners have also achieved OHSAS 18001 compliance or participate in programs like OSHA’s VPP Star. While we believe that certification to ISO standards for our administrative facilities would not be particularly meaningful to our stakeholders, we regard the framework as an invaluable tool and have set an internal goal to structure our Sustainability Management System accordingly.

During the reporting period, we performed a gap analysis to ISO 14001 as a starting point and we plan to combine guidelines for Risk Management, Occupational Health & Safety Management, Social Responsibility, as well as Energy Management and Lifecycle Assessment by 2020 to arrive at a well-rounded system for management and improvement of our economic, social and environmental impacts.

Finally, we believe that the precautionary principle is an essential part of sound sustainability management. We are all familiar with phrases like “better safe than sorry,” but the

ISO 14000 SeriesEnvironmentalManagement

OHSAS 18001Occupational Help &Safety Management

Energy StarEnergy

Management

ISO 31000Risk Management

ISO 26000Social Responsibility

reality is that with over 84,000 chemicals in commercial use, most have not been properly assessed. For a company of our size, the cost associated with product testing remains challenging. In 2012 and 2013, we invested over $74,000 in product testing to ensure the continued safety of Simple Green products for our customers and the environment. In 2012, following California’s decision to adopt stringent Volatile Organic Compound (VOC) levels for General Purpose Cleaners, we reformulated our products to eliminate the VOC ingredient with which we had formulated for 39 years. Because new toxicological information emerges constantly, we carefully assess each new product ingredient or packaging component. As we build our sustainability management system over the next five years, we will take a close look at optimal integration of material alternative and risk assessments, both in-house and through independent assessors. We will also continue to evaluate opportunities for sustainable product certifications by credible third parties to ensure the continued pursuit of customer and environmental safety.

Strategic Memberships


Our Supply Chain

“The collaboration between SMI’s Sustainability department and our EHS

department is helping us improve our own sustainability efforts.”

- Alex Urzua, General Manager

& Jill Krawczyk, Sr. EHS Engineer, Goodwin Co.



Sunshine Makers, Inc. (SMI) manages a multi-tier supply chain. While the company owns and markets the Simple Green product line, manufacturing, warehousing and most distribution activities are contracted to independent organizations. Consequently, some of our most significant conservation opportunities can be realized through collaboration with our value chain partners, particularly reduction in water and energy consumption, raw material impacts, fleet emissions and waste minimization. Furthermore, we have an opportunity to evaluate and influence labor, human rights and social impacts within our supply chain.

During the reporting period, we initiated dialogue with our first tier suppliers about mutual sustainability goals and began mapping social and environmental hotspots across all tiers. Although we source components of our products in the U.S., some raw materials are imported by the component manufacturer in lower tiers of our supply chain. Extraction and potentially refinement of raw materials overseas may contribute to negative supply chain impacts, including environmental degradation, as well as inadequate enforcement or lack of labor rights and occupational health and safety regulations. In order to increase our awareness

of these impacts within our value chain, we have developed and adopted a Supply Chain Sustainability Policy, accompanied by a Supplier Risk Assessment Questionnaire. These documents establish minimum standards for social responsibility and environmental stewardship by supplier organizations and help us assess the current state of their compliance with these standards.

In 2014, we plan to survey 100% of new and existing first tier product-related suppliers in order to map environmental, labor, social and human rights impacts within these segments of our supply chain. The results will be leveraged to create an action plan for improvement in areas of concern in collaboration with our suppliers and progress will be tracked through periodic evaluation. A preliminary assessment of eight first and second tier suppliers during the reporting period identified three suppliers with potential environmental impacts related to unsustainable sourcing of palm kernel oil in their supply chains. While two of the three suppliers are members of the Roundtable for Sustainable Palm Oil (RSPO), none of the palm oil used in their products is currently certified sustainable. We immediately initiated dialogue to begin the process

During the reporting period, we initiated dialogue with our first tier suppliers about mutual sustainability goals and began mapping

social and environmental hotspots across all tiers.

No Hotspots Identified

Percentage of evaluated suppliers with potential & actual negative environmental impacts*

Hotspots Identified

*Based on the initial evaluation of eight first and second tier suppliers who supplied information in order to help us reduce or eliminate environmental impacts.

63%37%



U.S. Based Supplier

Our Direct Suppliers

Small or Medium Sized Enterprise/Family Owned

of phasing out palm oil-based ingredients. Although our suppliers have already committed to this phase-out by 2015, we understand that this is a significant social and environmental hotspot, wherefore we will make every effort to substitute as soon as possible. We believe that the collaborative model for value chain optimization is most effective in impacting corporate social responsibility and creating positive outcomes for the largest number of people and communities. We did not terminate any supplier relationships during the reporting period.

We will continue our evaluation and improvement efforts in 2014 and 2015 with the intention of initiating our first product lifecycle analysis during this period. Supporting local economies has always been a priority for Sunshine Makers, Inc. Therefore, our product

components, including the ingredients and packaging materials we purchase for products sold domestically, are 100% sourced in the U.S.A. We are aware that some minor raw material inputs, such as the aforementioned palm oil, are imported. As we learn more about the lower tiers of our supply chain, we will continue to address social and environmental impacts. Where we have limited influence based on purchasing volume or degree of removal from our finished product, we will at least initiate dialogue and explore opportunities to join forces with interested parties in order to drive progress.

We have yet to analyze procurement activities related to supplies and services that are not product related. We plan on pursuing this endeavor once we fully understand our product-related impacts.

100%95%

SMI Select Supplier Certifications



Extraction of raw materials

Raw material transport

Refinement of raw materials/

Feedstock production

Feedstock transport

Component manufacture

Component transport to

manufacturingsites

Manufacture of final product

Warehousing & distribution

Retail &industrial sales

Product use

Product & packaging disposal

The Simple Green Value Chain



Stakeholder Engagement

“We are learning new ways to improve our environmental efforts. Receiving the support from our employer shows the

passion upon which the company was founded.”

- Brandi Lyon, Inventory Specialist and Sunshine Maker



Over the past 38 years, we have built close relationships with many of our business partners, distributors and customers, and while the adoption of a formal stakeholder engagement process is new to us, we are committed to improving this important aspect of our sustainability program. In 2013, we took various steps to initiate a structured engagement process with multiple stakeholder groups in preparation for this report, particularly those closest to our business and those prioritized by our staff. Our efforts included

• developing a stakeholder map,

• an internal survey of Sunshine Makers,

• an online survey of our end-users,

• conversations with business partners, particularly suppliers,

• an in-depth review of published competitor sustainability information.

We asked our stakeholders which socio-environmental initiatives and product attributes are most important to them, how we can improve as a company and whether our staff feels sufficiently engaged. We also asked end-users whether they recycle our packaging. These and other questions helped us assess our strengths and weaknesses and prepare a materiality matrix. We then evaluated the results alongside an internal aspect-impact analysis, an assessment of available environmental metrics, various gap analyses (most notably against ISO 14001), and developed a road map through 2020 to reflect our priorities.

In the process, we realized that we had a lot of catching up to do, but we made significant progress in the 4th quarter of 2013 and are pleased to report the following accomplishments to begin addressing stakeholder concerns:

• Adoption of a Sustainable Business Policy

• Development of a Supply Chain Sustainability Program and Supplier Risk Assessment

• Establishment of a tracking system for environmental metrics for Sunshine Makers, Inc. and our most significant Tier I suppliers

• Introduction of a comprehensive waste reduction and diversion program, including on-site composting, at our Huntington Beach headquarters

• Development of a greenhouse gas emissions inventory for 2012 and 2013, including a number of Scope 3 sources

• Initiating conversations with Tier II suppliers to address sustainable palm oil sourcing

• Addition of a full-time Director of Sustainability

• Decision to publish an annual Sustainability Report to share our efforts and goals and further engage with the public

Not at allSomewhatA lot

Not ImportantFeels GoodExpect ItBetter Company Better Product

NeverRarelySometimesMostlyAlways

How much does our socially responsible mission impact end-user purchasing behavior?

How frequently do end-users recycle our packaging?

Why is buying from a socio-environmentally concious company important to end-users?

2013 End-User Survey Results[1]

3%28%69%

4%10%43%43%

78%11%7%1%3%

1. Based on 344 responses with a confidence level of 95% and a margin of error of +/-5%.



We have only just begun our formal stakeholder engagement process in 2013 and realize the many benefits of reaching out to and collaborating with additional stakeholder groups, including regulators, NGOs and distributors, on an ongoing basis. While it will take some time to develop and implement a comprehensive strategy, we intend to fine-tune our stakeholder engagement process in 2014 and beyond. We plan on reaching out to key stakeholders at least annually through open dialogue, surveys, polls and other formats. We also hope to develop select joint goals with our most significant suppliers starting in 2015 and to accomplish them through collaboration and information sharing.

Stakeholders

Enga

gem

ent O

pportunity Partially Engaged

Fully Engaged

Cred

itors

· In

sure

rs · S

ociety

Com

petit

ors ·

Contractors

Customers · End-Users · Suppliers · Environment

Government & Regulators · Comm

unity · Media

NGOs · Interest Groups · Distributors

Sunshine Makers · Board of Directors · President · Executive Team

To what extent are we engaging our stakeholder groups?

Fernando Vizcaino, Production Supervisor, Goodwin Company



Materials

Energy/Fuel

Emissions

Training & Education

Community

Biodiversity

Consumer Safety

Waste

Water

Health & Safety

Supply Chain

Marketing

Diversity & Equal Opportunity

Economic Performance

Materiality Matrix

Minor Average Major

Impact on Internal

Stakeholders

Min

orM

ajor

Aver

age

Based on internal analysis and stakeholder feedback, what are our material impacts?

Impa

ct o

n Ex

tern

al

Stak

ehol

ders



Stakeholder Key Concerns

Sunshine Makers

Suppliers

End-Users, Customers

Executive Team, BOD, President

Interest Groups

Government & Regulators

Community

Environment

Customers, Management Systems, Energy, Supply Chain, Community, Training & Education

Economic Performance, Product Safety

Product Safety, Packaging, Fuel/Energy, Waste

Product Safety, Economic Performance, Resource Efficiency

Transparency, Palm Oil Sourcing

Product Safety, Pollution Prevention, Occupational Health & Safety

Pollution Prevention, Biodiversity, Economic Performance

Resource Conservation, Pollution Prevention, Emissions Reduction, Biodiversity

Product Safety

Reduce Packaging

Fleet Efficiency

Waste Reduction

Energy Reduction

Responsible Sourcing

Water Reduction

Giving Back

Biodegradable

Concentrate

Non-Toxic

No Animal Testing

Versatility

Less Packaging

High PCR

Ingredient Disclosure

Which product attributes are most important to Simple Green users?

What are our stakeholders most concerned about?Which sustainability initiatives are most important to Simple Green users?

Ranked from most important (top) to least important (bottom).



65% of Sunshine Makers cite lack of awareness as the primary obstacle to sustainable business practices

Nearly 78% of Sunshine Makers consider our customers our most important stakeholder group

Over 60% of Sunshine Makers agree that raw materials, water and energy/fuel are our most significant impacts

31% of Sunshine Makers feel adequately engaged in sustainability efforts, nearly half are sometimes engaged and 22% feel insufficiently engaged.

Sunshine Makers weigh in on Sustainability.

Wesley Su, Norman Lao & Mary Crotteau, Creative Department, Simple Green

Jameson Wong, Production Control Coordinator & Photographer, Simple Green


“Put a fancy quote about our planet here.” - Krissy Danforth, Graphic Designer

Taking Care of Our Planet

“Solving the environmental issues of the 21st century is perhaps the greatest innovation

challenge ahead of us and I can’t think of any single element more critical to our success than

effective collaboration.”- Constanze Duke, Director of Sustainability



Simple Green was developed to solve a specific problem following a tragic event. Bruce FaBrizio’s father, Joseph P. FaBrizio, was a chemical sales representative working in downtown Los Angeles when Bruce was a young man, helping his dad deliver chemicals during college breaks. One day, they observed a horrifying accident at a plating plant, where a man fell into a vat of chemicals used in the passivation of metals. They watched the man suffer a very painful death following removal from the vat. As they drove home, they discussed the development of safer chemistry for industrial cleaning applications.

There was never a question about the link between human and ecological health for Bruce; environmental initiatives ranging from beach clean-ups and educational programs to NGO partnerships and bioremediation projects have continued to shape the company over the years.

Over the past decade, frameworks for the assessment and improvement of corporate social and environmental performance have been notably refined. Measuring, trending and improving operational impacts on society and the environment are now mainstream business practices. Modestly staffed, developing a strategic sustainability program was an enormous undertaking for Sunshine Makers, Inc. and after trying to manage daily responsibilities alongside environmental and community initiatives, while also learning about best practices in corporate social responsibility, our leadership team decided to bring a full-time sustainability professional on board in September 2013. Since then, our team has worked hard to develop a roadmap for strategic management of our sustainability efforts and we are confident that this new direction will allow us to drive progress with greater precision, resulting in meaningful outcomes for our company, our customers, our communities and our planet.

Human influence on the climate system is clear. This is evident from the increasing greenhouse gas concentrations in the

atmosphere, positive radiative forcing, observed warming, and understanding of the climate system.[1]

1. IPCC, 2013: Summary for Policymakers. In: Climate Change 2013: The Physical Science Basis. Contribution of Working Group I to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change [Stocker, T.F., D. Qin, G.-K. Plattner, M. Tignor, S.K. Allen, J. Boschung, A. Nauels, Y. Xia, V. Bex and P.M. Midgley (eds.)]. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA.

Mark Christenson, Senior Bird Keeper and Trainer at Carolina Raptor Center with Skoshi, the red-tailed hawk. Donation beneficiary.© Photo by Zada McCoy.



Impact

FinancialImplication

Management

Our Changing ClimateAn analysis of our materiality assessment revealed that emissions were ranked as the highest impact by external stakeholders - alongside consumer safety - and as an above average impact by internal stakeholders. The implications of climate change are far-reaching. Loss of biodiversity, displacement of populations, and human health concerns form the basis for economic instability and global unrest, creating significant business risks.

Decrease in water availability for product and operations

Property damage, displacement of facilities, disruptions in supply chain and distribution

Limited supply of materials/ingredients

Degrading communities, smaller talent pool, compromised well-being of workforce

Cost of relocation, cost of sourcing new suppliers, increase in insurance premium

Cost of reformulation and redesign, sourcing alternatives

Rising health insurance premiums, higher cost of recruiting, rise in absenteeism, loss of revenue

Conservation, material optimization, consumer education, GHG reduction

GHG reduction, perform periodic risk assessments

Sustainable sourcing, protect areas of high biodiversity in communities where we operate

Environmental impact reduction, staff, consumer and community education, workplace wellness initiatives

Increase in operating costs/product pricing

Water Scarcity/Drought

Sea Level Rise Loss of Biodiversity

Decline in Human Health

Physical Risk/Opportunity



Economic (positive or negative)

Need for resources to manage process

Need for resources to ensure compliance

Economic (positive), reduction in regulatory burden

Increased expenses or tax break based on performance

Added expense Added expense

Cost savings and/or avoidance, increased opportunity for competitive advantage

Resource optimization, emissions reduction

Proactive data collection and management, product lifecycle assessment

Ongoing assessment of regulatory developments and evaluation of potential implications

Focus on exceedance of existing regulatory requirements

Regulatory Risk/Opportunity

Resource & emissions taxes

Increased requirement for evaluation & reporting

Regulatory Confusion

Regulatory Incentives

Impact


Management



Effect on decision-making, need for insurance

Inability to insure high-risk property, need for additional insurance, effect on property values

Emissions reduction, potential removal of oil & gas subsidies and price increase for fossil fuels

Public perception (positive or negative)

Cost of insurance, cost avoidance through reduction in liability by operating under the precautionary approach

Insurance-related costs, loss in asset value

Cost savings with early adoption or increases in fossil fuel-generated electricity

Competitive advantage or loss in revenues

Identify opportunities for liability reduction, progress towards precautionary approach

Monitor developments

Monitor opportunities for utilization of renewable energy sources

Continuous and strategic integration of sustainable business practices

Impact


Management

Other Risk/Opportunity

Directors and Officers Liability

Insurance Coverage Challenges

Renewable Energy

Innovation,Brand Image& Reputation



During the reporting period, we focused on risk assessment, followed by the development of a system for tracking and trending our environmental metrics. The year 2012 was chosen as our baseline to facilitate retroactive data collection. In addition, it most closely reflects our current operations, creating a relevant comparison to our 2013 performance. We also collected data from our suppliers to account for approximately 95% of our production.

At the end of 2013, we completed our first greenhouse gas inventory, which enabled us to set meaningful reduction goals and develop action plans for improvement. Our reported metrics include carbon dioxide, methane and nitrous oxide and were calculated using the framework of The Climate Registry’s General Reporting Protocol,[1] the most recent EPA eGrid emission factors[2] and IPCC Global Warming Potential rates.[3] Our consolidation approach for emissions is operational control. We intend to review our progress at least twice a year and publicly report results annually.

70

60

50

40

30

20

10

600

500

400

300

200

100

2012

56

Absolute Scope 1 GHG Emissions Reduction 2013 over 2012


200

180

160

140

120

100

80

60

40

20


70.00

60.00

50.00

40.00

30.00

20.00

10.00

20122013

EmissionsIntensity RatioPer Production Unit[4]

Met

ric To

ns

Met

ric To

nsG

ram

s CO

2e

Met

ric To

ns

1. http://www.theclimateregistry.org/downloads/2013/03/TCR_GRP_Version_2.0.pdf2. http://www.epa.gov/cleanenergy/documents/egridzips/eGRID_9th_edition_V1-0_year_2010_Summary_Tables.pdf3. http://www.ipcc.ch/publications_and_data/ar4/wg1/en/ch2s2-10-2.html4. Intensity ratio calculated based on units manufactured for approximately 95% of all products. Units may vary greatly in size, but production distribution is consistent year-over-year, wherefore comparison is appropriate. Includes Scope 1, Scope 2 and measured Scope 3 emissions from carbon dioxide, methane and nitrous oxide. 5. Equivalencies calculated using the EPA Greenhouse Gas Equivalencies Calculator at http://www.epa.gov/cleanenergy/energy-resources/calculator.html

2012 to 2013 CO2e reduction was 33 metric tons. This is equivalent to carbon sequestered by:[5]

27 acres of U.S. forests in one year

846 tree seedlings grown for 10 years

2013 2012 2013

2012 2013 2012 2013

69-19% | -13 mt

171181

-5% | -10 mt

517527

-2% | -10 mt -7%



Which Greenhouse Gas Emissions are we Reporting?

Assumptions, omissions and supplemental information: 3.28% of emissions reported under Scope 1 and Scope 2 for 2012 and 2013 combined are based on estimated data. Calculations encompass approximately 95% of total production, omitting small domestic and international Tier 1 suppliers. SMI Scope 3 emissions from supplier activities are limited to significant Tier 1 suppliers and only include emissions from natural gas, propane fuel and purchased electricity. Employee commuting emissions are based on an employee survey dated October 2013. 19% of commuting emissions were estimated to account for non-respondents.. Owned fleet emissions are based on direct annual fuel spend and exclude fuel allowances to employees commuting in company owned vehicles. Scope 1 emissions from Natural Gas were 0.11 mt CO2e in 2012 and 0.10 mt CO2e in 2013. Scope 1 fleet emissions were 67.8 mt CO2e in 2012 and 54.5 mt CO2e in 2013. Scope 3 emissions from employee commuting were estimated to be 165 mt CO2e in 2012 and 2013. The HVAC system in our owned facility uses R-22, a hydrochlorofluorocarbon (HCFC) that is being phased out under the Montreal Protocol and for which emissions are outside of the reporting boundary of the framework of The Climate Registry.

• Replaced all single pane with double pane windows in our headquarters building (Scope 2 reduction)

• Staff education on waste minimization, including conservation of energy through responsible behavior, such as turning off equipment, minimizing use of peripheral equipment, and turning off lights (Scope 2 reduction)

• Trigger bottle optimization project (Scope 3 reduction), resulting in CO2e emissions reduction of 21.6 grams per unit

• Increased use of teleconferencing (Scope 1 reduction)

Emissions reduction initiatives resulting in 2013 improvements:

Scope 1Natural Gas,

Owned Fleet,Forklifts

Scope 3Supplier Natural Gas & Electricity,

Employee Commuting

Scope 2PurchasedElectricity

Scope 1 includes: Natural gas consumption, owned fleet emissions and forklifts. Process emissions, as well as emissions from PFCs, HFCs and SF6 were zero.

Scope 2 includes: Purchased electricity at owned and leased facilities.

Scope 3 includes: Supplier natural gas, forklift fuel and electricity consumption apportioned to Simple Green production, emissions from employee commuting. Excludes emissions from distribution losses for purchased electricity and business travel emissions.

Our 2014 absolute emissions reduction goal over 2012 is 10% for our combined Scope 1 and Scope 2 emissions and 5% for total emissions. 2013 over 2012 reduction of Scope 1 and Scope 2 emissions was 9.3% and reduction of total emissions was 4.3%. In addition, we plan on incorporating emissions for business travel and adding metrics from additional suppliers.



Managing materials and waste goes hand in hand and directly impacts financial performance. Reducing waste at the source is a common-sense business objective, but much more is at stake. The materials we choose may ensure someone’s livelihood or negatively affect the well-being of individuals or communities. They may deplete non-renewable resources and harm precious ecological systems or, conversely, provide leverage to educate consumers to protect the environment. Our internal and external stakeholders rated materials and waste as significant aspects.

Materials and waste are managed as part of our Supply Chain Sustainability and Waste Minimization programs, which we incorporated into our Sustainability Management System in 2013. These policies will be evaluated at least annually to account for regulatory and market changes, as well as newly discovered Best Practices.

In the third quarter of 2013, we completed a review of our waste management process at our headquarters. Although our waste management company operates a Material Recovery Facility, a relatively small percentage of materials is successfully recovered. Consequently, we adopted a waste minimization procedure, introduced a waste diversion program consisting of material sorting and composting, and we began tracking our paper consumption. We were able to reduce the size of our building’s waste bin by 33% and weekly bin removals from five to two. We installed a 7 cubic ft. composting drum and transformed existing trash bins into

Products, Materials, and Wastecolorful recycling receptacles. Every Sunshine Maker participated in interactive, small group training on the new program, which placed it into the context of our sustainability strategy and provided background on the overall environmental and health benefits of waste reduction. The month we rolled out the program, we diverted over 40% from our trash bins into recycling and composting streams as compared to prior months in 2013.

Additionally, we began phasing out disposable cafeteria supplies, including paper plates, bowls and cups, and plastic utensils. To make the transition easier, several Sunshine Makers donated dishware from home to share at the office. Seeing everyone contribute to get the program off the ground was a great experience, which resulted in other helpful suggestions, such as organizing a volunteer team for sustainable corporate event planning, providing desk-side recycling bins and creating cardboard box collection areas on each floor to maximize recycling. Finally, we unsubscribed from over three dozen mailers, catalogs and magazines to reduce paper waste created at our office.

Recycled Input

Virgin Materials

Recycled Materials Input

22%78%



Our goal for 2014 is to reduce waste generated at our headquarters by at least 50% over 2013. We are also exploring options for a zero-waste-to-landfill program. Tracking waste generated at our supplier organizations has turned out to be immensely challenging. Many of them are not tracking or are tracking in a way that would

Total Waste Generation at HQ

2013[1]

56,258 lbs

Landfill Waste Generation at HQ

2013[2]

38,794 lbs

Landfill Waste Reduction at HQ in December 2013[3]

42 %

Composted at HQ 2013[4]

277 lbs

Universal Waste Generation at HQ

2013[5]

649 lbs

Recycling at HQ 2013[2]

16,538 lbs

1. Figure based on size of waste bin and number of removals.2. Figure for “Recycling” based on 30% material recovery rate at MRF for January through November 2013 and measured recyclables for December 2013. Does not include diverted cardboard, plastic beverage bottles and soda cans, which were not weighed during the reporting period. “Landfill Waste” figure also based on material recovery rate of 30%.3. As compared to average monthly generation January through November 2013.4. Based on food waste weight of 39.63 lbs per cubic feet and generation of 7 cubic feet. http://www.nmenv.state.nm.us/swb/doc/Conversiontable.doc5. Based on generation of 55 g of oily water at 7.5 lbs/g, 86.96 lbs of fluorescent tubes based on approximate weight of 0.165 lbs /ft. and an estimated 150 lbs of electronic waste.

New all-plastic trigger results in a source reductionof 19 tons of resin

and 10 tons of steel anually

Made in the USA which allows for a smaller carbon

footprint with reduced shipping

distancesMade of 25% post consumer

recycled content

Decreased gram weight of bottle preform reduces transportation

emissions

ReducedCO2e

emissions by 21.6 grams/

unit

not allow us to determine the percentage attributable to the manufacture of our products. We will continue to monitor opportunities in this area, but will focus more heavily on waste reduction efforts we can directly impact, for instance by optimizing material selection in product packaging.

Redesigned spray bottle introduced in 2013 and featured in the October 2013 issue of Packaging Digest.



EnergyDuring the reporting period, we conducted an Energy Star assessment of our headquarters, which is our largest owned operation. The initial assessment was based on 2012 data, resulting in a score of 22. In 2013, we realized a one point improvement. However, the only significant energy efficiency project implemented in 2013, the removal of single-pane and installation of double-pane windows throughout our building, occurred at the end of the year. We expect to see a more substantial energy use reduction from this project in 2014.

Based on the outcome of this assessment, we are evaluating additional energy reduction initiatives in 2014, including

• Consultation with an energy advisor

• Lighting upgrade

• Installation of motion sensors

• Improved building and small equipment management

The relatively low performance of our building makes energy consumption both financially and environmentally relevant. In addition, our external stakeholders rated energy and fuel consumption a major impact and internal stakeholders found it to be of above average importance. Energy reduction was included as a primary objective in our Sustainable Business Policy, which we drafted in 2013, as well as our Waste Minimization Program. We will continue to measure improvement using the Energy Star Portfolio Manager and evaluate our score at least annually.

SMI 2013:Energy Star Score = 23

Energy Star Score needed for building

certification = 75

Average score for similar building = 50

Maximum Energy Star Score = 100



During the reporting period, 100% of the energy consumed by SMI and suppliers providing usage data was derived from non-renewable sources. SMI did not engage in the sale of electricity, heating, cooling or steam.

Total measured energy consumption in 2013 was 5,791 gigajoules (GJ), of which 2,899 GJ were attributable to external sources.[2] Internally, we achieved a reduction in electricity consumption of 131 GJ over 2012, resulting from our building efficiency improvement project. The intensity ratio per full-time employee was 49 gigajoules for SMI-controlled facilities,[3] while the external manufacturing energy intensity ratio was 0.000241 gigajoules (241 kilojoules) per unit of product manufactured on our behalf.[4]

Our goal for 2014 is to reduce absolute energy usage by 10% over our 2012 baseline in facilities we control. As we continue to work closely and collaboratively with our suppliers, we hope to be able to set joint reduction goals by the end of 2015.

1. Includes electricity and natural gas consumption as reported on monthly utility statements; propane fuel as reported by supplier; SMI-owned fleet fuel; SMI forklift propane fuel estimated consumption.2. KWh and MMBtu to GJ conversion factors obtained from Appendix C: Standard Conversion Factors of the Climate Registry’s General Reporting Protocol V 2.0: http://www.theclimateregistry. org/downloads/2013/03/TCR_GRP_Version_2.0.pdf. Automotive gasoline and diesel conversion factors obtained from MIT Energy Club http://www.carbonlighthouse.org/wp- content/uploads/2010/10/UnitsAndConversions.pdf. Propane fuel energy content in joules obtained from http://www.afdc.energy.gov/fuels/fuel_comparison_chart.pdf.3. Includes at least 95% of facility space over which SMI has operational control.4. Figure accounts for approximately 95% of SMI products manufacture. Notes: Therms reported by natural gas provider converted to MMBtu using a factor of 0.1 according to Appendix C: Standard Conversion Factors of the Climate Registry’s General Reporting Protocol V 2.0. SMI fuel consumption calculated from total annual fuel spend and the average annual cost of gasoline per gallon according to the California Energy Commission, based on the assumption that the majority of fuel purchases for the SMI-owned fleet have occurred within California state lines. http://www.energyalmanac.ca.gov/gasoline/gasoline_cpi_adjusted.html. Employee commuting fuel consumption is excluded.

6400.00

6200.00

6000.00

5800.00

5600.00

5400.00

5200.00

5000.00

5791

SMI Total Measured Energy Consumption[1]

Gig

ajou

les

6079

2012 2013

-4.7% | -288 GJ

John Hernandez, Building Maintenance Tech, Simple Green



WaterOur home state of California experienced its driest year on record in 2013. At the same time, our industry is highly dependent on water as a product input and for the continued operation of manufacturing facilities. Water was also rated of above average concern by internal and external stakeholders. Understanding that conservation is the most effective and affordable strategy to stretch our water supply, we incorporated water conservation into our waste minimization procedure and drafted a plan for the replacement of all fixtures at our headquarters with water-saving alternatives.

However, the majority of our water consumption occurs in the manufacture of our products. Most of our products are concentrates and over 95% of Simple Green® is produced in ISO 14001[1] certified facilities, where water conservation is already on the agenda. Nevertheless, we visited our most significant suppliers in 2013 to initiate dialogue around water conservation and other important sustainability issues.

1. ISO 14001 is an internationally recognized standard that sets out the criteria for an environmental management system. http://www.iso.org/iso/iso14000 2. During the reporting period at least 96.7% of our water supply was derived from municipal water sources. The remaining supply has not yet been evaluated.

SuppliersSMI

2013

2012

6,425,795

7,024,157

277,508

348,568

Water Consumption in Gallons[2]

SuppliersSMI

Foster conservation

through education and dialogue

Improved maintenance of

existing systems to prevent losses

Water-saving features and

technology, Reuse & Recycling

Reduce water

footprint



Water reduction 2013 over 2012

SMI: 71,060 gallons or 20.37%Suppliers: 598,362 gallons or 8.5%Total: 669,422 gallons or 9.01%

Our 2014 goal: Reduce total water consumption by 10% over the 2012 baseline year

669,422Gallons of Water Saved

16,429+Loads of Laundry*

=

*(based on water usage per load of laundry by average U.S. family per year)

Reducing our water footprint will be among our most critical sustainability objectives over the coming years and we will work closely with our supplier partners to drive progress and achieve internal and external impact reduction goals.

A Wildlife Refuge at Our DoorstepEvery so often, a snapshot of a stunning sunrise over the nearly four square kilometer wetland behind our building circulates the office. Sea lions, dolphins and a variety of migratory birds are daily sights. This precious ecosystem, known as the Seal Beach National Wildlife Refuge, is a conservation area under joint management by the U.S. Fish and Wildlife Service and the U.S. Navy with additional support provided by local volunteers. The refuge, an International Union for Conservation of Nature category IV (habitat/species management) area, provides essential habitat for three endangered species, including the light-footed Clapper Rail, the California

Least Tern, and the Belding’s Savanna Sparrow. Less than 10% of California’s natural wetlands are remaining, a sobering example of valuable habitat destruction as a result of economic development.

The Simple Green headquarters building in Huntington Beach is directly adjacent to the Seal Beach National Wildlife Refuge and we provide coastal access to the public, including free parking on our property during weekends and holidays. Although our impact on the wetland is low with an operational area of approximately 0.003 square kilometers, its proximity creates an



opportunity to proactively support preservation of a critical ecosystem in our local community. Therefore, we have included biodiversity as a material impact, regardless of its relatively low score in our materiality assessment.

In 2012, as in many previous years, Simple Green sponsored an educational and hands–on community event for the clean–up of the marsh adjacent to our building. In 2013, several Sunshine Makers participated alongside other local businesses and community volunteers in a native planting event at the refuge, which resulted in the addition of over 1,000 drought resistant plants. After a comprehensive tour of the wetland and upon engaging in conversation with the refuge manager, we discovered an additional opportunity in the sponsorship of classroom activities at local schools to help educate children about the value of wetlands

and native landscapes. We are excited to launch this educational pilot project in 2014.

Through frequent dialogue with the refuge manager, we ensure that our efforts best serve immediate and long-term needs of the wetland and that we are equipped with the most current information to pass on to our staff and the community. Over the next five years, we hope to further strengthen our partnership, so that the Huntington Beach and surrounding communities, as well as the area’s 11 million annual visitors continue to benefit from the services provided by our wetland and take delight in its diverse wildlife.

“I really appreciate Simple Green’s support of the refuge.”- Kirk Gilligan, Manager, Seal Beach National Wildlife Refuge



“We are grateful to have such a supportive and diverse

customer base and we do our absolute best to give back in any

way we can.” - Theresa Provolt, Customer Service

& Business Support Manager

Taking Care of People



Simple Green was invented out of a desire to take better care of people (see our story on pg. 23). It is the reason we are here today. In addition, being part of the distinct beach culture and pronounced community spirit of Huntington Beach has always inspired us to take care of our friends and neighbors. This commitment to our customers and communities has permeated our locations around the world over the years and has become an essential part of our culture. We don’t call ourselves employees; we are the Sunshine Makers and we try to live up to this designation every day.

Sunshine Makers, Inc. is not directly engaged in manufacturing activities, wherefore a substantial portion of our work is performed by contracted suppliers and their staff. There were no significant variations in workforce numbers. With regard to collective bargaining, Sunshine Makers, Inc. complies with the National Labor Relations Act and has informed staff of their rights under this law.

Occupational Health & Safety were deemed material by internal and external stakeholders. As a critical component of effective risk management, our commitment to regulatory compliance and our pledge to foster the well-being of our team, we make ongoing efforts to address workplace health and safety. Our safety committee meets at least quarterly to address any concerns and suggestions and our facilities staff receives the support and resources needed to effectively manage safety and security.

In addition, Sunshine Makers have access to an on-site gym with shower facilities and lockers, an outdoor seating area overlooking Anaheim Bay, covered parking, free Simple Green products, and if a lunch-time walk or beach picnic is on the agenda, our headquarters is within walking distance of a Sunset Beach access path. Our team is always engaged in activities, from eco-challenges, bring-your-dog-to-work day and Halloween costume contests to volunteer activities and annual karaoke nights. Our family also includes furry and feathered friends, including Scarlet, an African Grey parrot with a highly entertaining repertoire of phrases and whistles; Oscar, our Severe Macaw; Sweetie, a white dove we rescued after a parade nearly a decade ago; and Sancho, our faithful Golden Retriever who accompanies his dad, Bruce FaBrizio, to work on most days. Several colorful aquariums and lots of plants also add life to our vibrant office environment. Large windows all around provide fresh air and daylight in nearly all work spaces and a wrap-around deck overlooking the bay provides scenic views during work-breaks. Our headquarters isn’t just where we work; it is a reflection of our commitment to well-being.

The Sunshine Makers

Full-Time Salaried

Full-Time Hourly

Part-Time Hourly

Male

Female

Male

Female

Male

Female

Staff Tenure

20+ Years

10+ Years



Permanent staff: 29 males, 30 femalesTemporary staff: 113Regional staff distribution: 100% U.S. based

Days Away, Restricted and Transferred (DART) rate: 1.57%DART Rate National Average for NAICS Code (50-249 employees): 4.8%[1]

Number of work-related injuries: 1Type of injury: ErgonomicRegion: North AmericaGender: MaleStandard: California OSHA

Incidents of Discrimination: 0

Average training hours per employee per year: 112013 Performance Reviews: 02012 Performance Reviews: 60%

1. From Department of Labor annual summary report 2012. http://www.bls.gov/news.release/archives/osh_11072013.pdf2. In accordance with the Equal Employment Opportunity federal statute, employers with less than 100 employees do not have a legal obligation to collect or provide this information to the Federal Government. The EEO minority groups and associated data shown are observation-based estimates only.

2013 New Hires

HQ

Bentonville

Chicago

HQ

Bentonville

Chicago

0/2

0/0

0/0

0/0

0/0

0/0

2/6

0/0

0/0

0/1

0/0

1/0

0/0

0/0

0/0

0/1

0/0

0/0

2/6

0/0

0/0

0/2

0/0

1/0

≤30Male/Female

30-50Male/Female

≥50Male/Female

TotalMale/Female

2013 Turnover

Sunshine Makers

SupervisedContract Staff

Simple Green Full-Time to Temporary Employee Ratio

59113

VP & Above

Male

Female

Male

Female

Male

Female

0.0%

0.0%

0.0%

0.0%

3.4%

3.4%

≤30 30-50 ≥50Hispanic

Directors & Managers

BlackAsian or Pacific

IslanderNon-

Minority

Support & Admin

0.0%

1.7%

6.8%

3.4%

16.9%

27.1%

15.3%

1.7%

5.1%

6.8%

1.7%

6.8%

0.0%

0.0%

0.0%

0.0%

5.1%

6.8%

0.0%

0.0%

0.0%

0.0%

0.0%

1.7%

0.0%

0.0%

1.7%

0.0%

3.4%

3.4%

15.3%

3.4%

10.2%

10.2%

13.5%

23.7%

Diversity[2]

Many Sunshine Makers have been with the company for over a decade, several for over two decades, and this level of loyalty reflects in our low turnover rate. Nevertheless, we are mindful of the importance of appealing to new talent as well. As we prepared for this report, the data we captured indicated opportunities for improvement, particularly in the frequency of performance reviews and training hours per employee. In 2014, we will research and share Best Practices in these areas and develop a strategy to maximize benefit for our management team and our staff alike.

American Indian or Alaskan Native

0.0%

0.0%

0.0%

0.0%

0.0%

1.7%



Our CommunitiesFrom the very beginning, we have been advocates for acting locally, so involvement in our communities has always been a priority. In 2013, we participated in beach clean-ups, native plantings, a Wag N’ Walk event, the International Coastal Clean-Up, sponsored the U.S. Open of Handball and continued our support of schools, animal shelters, Toys for Tots, marine conservation organizations and various other non-profits around the world.

In 2013, Bruce FaBrizio also introduced the Simple Green Random Acts of Kindness Program. He distributed hundreds of gift cards internally and asked Sunshine Makers to pass them on to members of their communities who shine professionally, go the extra mile or put a smile on someone’s face. Gift card recipients receive a complimentary cleaning kit for their homes or cars.

Daughters of the Nile, Long Beach/Anaheim Chapter (Supports Shriners Hospitals for Children) (P)Hesby Oaks Preschool (P)Boy Scout Troop 597 (P)Assistance League of Huntington Beach (P)Village View School PTO (P)Hope View Elementary PTO (P)Joliet Jr. College (P)Huntington Harbour Philharmonic (Supporting music programs for local schools) (P)2 Million Dogs 2 Miles (P)Upper Craig Creek Volunteer Fire Department (P)Harbor View Elementary PFO (P)Lincoln Military Housing (P)Cypress High School Grad Night Committee (P)Institute for Community Living (P)Teen Challenge International (P)Friends of Children’s Library (P)The Academy of Palm Desert Presbyterian School PTO (P)

Marine Academy of Technology and Environmental Sciences PTSO (P)Pipeline to a Cure (P)Margaret Landell Elementary School Silent Auction (P)Spring View Middle School PTSA (P)Wardell Volunteer Fire Department (P)Huntington Beach Tree Society (P)City of Kissimmee Public Works (P)Wauconda, Il Park District (P)Unrealable Cruise Assn. (Supporting students from LA Unified School District) (P)Lakebridge Health Care Center Women’s Event (P)Mission Bay Yacht Club Power Fleet (supporting Military Appreciation Day, Voices for Children, The Burn Institute, Wheelchair Regatta, Gene Merrill Children’s Fishing Derby) (P)Lancaster County Corvette Club (Supporting Clare House for Homeless Women) (P)Evergreen Elementary PTO (P)Lake Tahoe Leka Appreciation Day, Kissemmee FL (P)

In 2013, we provided product (P) and monetary ($) donations to these and other community-based and non-profit organizations.

Pay It Forward

Aisling Reilly, 2013 U.S. Open of Handball, Sponsored by Simple Green© Keith Thode/ Keith Thode Photography



Sail for the Blind and Visually Impaired (P)South Mills Volunteer Fire Department (P)Richland Academy (P)Justice for Murdered Children (P)Orange County Vintage Chevrolet Club of America (Supporting Big Brothers & Big Sisters of Orange County) (P)Pasco Pet Fest (P)Home Depot (supporting America’s Veterans) (P)Cycles Veloce ($)NEMCC (P)Central Indiana Lab Rescue & Adoption (P)Dog Scouts Of America (P)Los Angeles Unified School District (P)The Villages at Mauna Lani (P)Hope View Elementary (P)AIDS LIFECYCLE (P)Ocean County Mothers Of Mulitples (P)Classic Chevys Of Reno (Supporting Veterans) (P)SoulQuench (P)Light Horse Legacy Inc (P)Sherman Oaks Parents Association (P)St. Bernard School (P)Habitat For Humanity Of Brevard County (P)Upper Craig Creek Volunteer Fire Department (P)Boy Scouts Of America (P)North Dallas Mothers Of Twins Club (P)Darrington Horse Owners Association (P)Cypress High School Grad Nite (P)Preeclampsia Foundation/Cranford NJ Promise Walk (P)Humane Society Of Pinellas County(P)Burlington County Animal Shelter (P)Hosanna Christian School (P)East Greenbush Fire Department (P)Penn Rehabilitation Center (P)Spring View PTSA (P)Silverton Deer Park Firefighters (P)

Baywater Animal Rescue (P)Doggie Cakes (P)Glenn Maker Post 1160 American Legion (P)Salvation Army (P)All Breed Rescue & Training (P)ISKCON Of San Diego (P)Mid Island Y JCC (P)City Of Tacoma (P)South Mills Volunteer Fire Department (P)Arbor Healthcare For Women (P)Weakley Co. Rescue Squad (P)Lakebridge Health Care Center (P)Ventura County Sheriff’s Search & Rescue(P)Cypress Falls High School (P)HB Civil War Days (P)Carolina Raptor Center (P) Memorial Medical Center Foundation (P)Park View PTA (P)International Bird Rescue (P)Mounds Police Dept. (P)Camp James (P)EarthRiders Mountain Bike Club (P)Phoenix Dream Center (P)Richland Academy (P)Rise School Of Denver (P)Phoenix Dream Center (P)Evergreen Elementary School PTO (P)Hip Hop 4 Health Plus (P)Friends of the Park ($)Newport Harbor High ($)City of Hope ($)Big Brothers Big Sisters of Missouri ($)Big Brothers Big Sisters of America ($)Susan G. Komen for the Cure ($)KABOOM! ($)The Home Depot Foundation ($)

Top left image: Carolina Raptor Center volunteer Danielle Davis releases a rehabilitated red-shouldered hawk. © Photo by John Boal.



Assistance League of Long Beach ($)AltaMed Free Clinic ($)The Sea Lab (P)Cystic Fibrosis Foundation ($)Marina High School Football Program ($)Edison High School Baseball Program ($)Marine Mammal Stranding Center (P)Amore for Dogs ($)

In addition, the following schools were beneficiaries of funds raised during the 2013 EGBAR Golf Tournament:

Arlington Christian School ($)Ascension Catholic School ($)Big Shanty Elementary ($)Binghamton University ($)Boys and Girls Club of Santa Ana ($)Brigham Young University ($)Canyon High School ($)Carl Hankey Elementary School ($)Carmel Elementary School ($)Cartersville Elementary School ($)CF Academy, Inc. ($)College of the Holy Cross ($)Colony High School ($)Corona Del Sol High School ($)Crowders Creek Elementary School ($)Daniel Bagley Elementary School ($)Duarte High School ($)Edison High School ($)Equitas Academy Charter School ($)Foothill High School ($)Foothill Ranch Elementary School ($)Gwinnett School of Mathematics, Science & Technology ($)Heights Christian Junior High School ($)Idlewild Elementary School ($)

Indian Rocks Christian School ($)Kings Ridge Christian School ($)Kordyak Elementary ($)Lakewood High School ($)Leffingwell Elementary School ($)Lincoln Elementary ($)Litzsinger Elementary School ($)Marist High School ($)Mt. San Antonio College ($)Newport Coast Elementary Foundation ($)North Gwinnett High School ($)Ontario High School ($)Orangewood Children’s Foundation ($)Portola Hills Elementary School ($)Prado View Elementary School ($)Project Hope Alliance School ($)Rock Spring Elementary School ($)Roosevelt HS Girl’s Golf Program ($)Santa Margarita Catholic High School ($)South High School ($)Special Olympics Forsyth County ($)St. Patrick Catholic School ($)Tassajara Hills Elementary ($)Tesoro Lacrosse Booster Club ($)The Florida State Univeristy ($)The Haynes Fund ($)The Kubert School ($)The Rock Christian Academy ($)Valley Christian High School ($)Whittier Elite Baseball Academy ($)William Horlick High School ($)



Our CustomersOur customers are at the heart of what we do and that includes our end-users, retail clients and distributors around the world. Not surprisingly, our materiality assessment revealed that consumer safety is the highest ranking priority for internal and external stakeholders alike. Ensuring product safety is an ongoing process encompassing 100% of our products and involving ingredient assessments, testing and continuous evaluation of new information.

During the reporting period, there were no incidents of non-compliance with health and safety codes, marketing communications, advertising or sponsorships and no complaints concerning breeches of privacy or loss of customer data.

We recorded one labeling incident resulting in a warning, based on one state’s specific requirements for qualification of biodegradability claims and provided the required information immediately to show that our products meet stated guidelines. We also received one complaint of conflicting label and web content. This latter complaint did not result in any fines or warnings and was corrected immediately.

Customer service is of utmost importance to us. We manage all customer calls and emails directly from our headquarters and categorize and track all comments in order to identify improvement opportunities on an ongoing basis. We also engage customers through social media, surveys, during community events, trade shows and in day-to-day conversations.

“Safety is a product’s most important attribute. From the product development stage through the quality control of finished goods, we always seek to make

informed ingredient decisions and closely monitor final results so that the safety of our products is never questionable in our customer’s mind.”

- Carol Chapin, Vice President of Research & Development

Product Certifications



Testimonials

We have found this product to be so effective and are your

loyal fans.

I’ve used Simple Green for years,

both the gallon and the spray bottle, love them both, have never been

disappointed in their performance.

I love Simple Green products! They work great

on the occasional pet accidents

and on everyday cleaning.

I <3 you guys!

I love Simple Green more

than I love my man.

With 5 cats, some of which have allergies, it is important to use non-toxic products in

the home. I buy Simple Green by the gallon and

use it multiple ways.

Great Products and good company!

Simple Green does what it says it does.

Works great!!

Simple Green products are the best I’ve found for cleaning in general

and specifically for granite counter tops and most of all in cleaning up

pet messes.

You have GREAT

products.

Keep up the good work

you guys do!

For more customer testimonials, please visist SimpleGreen.com



“Think Globally, Act Locally.”

In 1989, Bruce FaBrizio established the EGBAR® Foundation. EGBAR is an acronym for Everything’s Gonna Be All Right. The foundation is funded by Simple Green and public contributions for the purpose of advancing environmental education and supporting community clean-up projects.

During the 1990s, the EGBAR Foundation reached over one million students with its environmental education curriculum as part of the Newspapers in Education initiative, sponsored multiple community clean-up projects and began its annual EGBAR Golf Tournament fundraiser. In 2012, the EGBAR Foundation expanded into Mexico and in 2013, it was named Benefactor of the Year by the Education for the Children Foundation.

As our leadership team discussed the direction of our sustainability strategy through 2020, we found multiple opportunities to expand the reach of the EGBAR Foundation beyond its staple fundraising events over the next five years by refocusing on its original purpose – environmental education and community clean-up – which is now more important than ever. Framing scientific findings in a manner that drives socio-environmentally conscious behaviors remains a critical component of environmental education. Through partnerships with conservation groups and classrooms, the EGBAR Foundation is well-positioned to serve as a change agent in our communities and help educate the promising young environmental leaders of the future.

In 2013, we decided to allocate funding towards a 2014 partnership project with the Seal Beach National Wildlife Refuge, which is adjacent to our Huntington Beach headquarters. This community classroom initiative will continue the strategic evolution of the EGBAR Foundation and ensure its ongoing relevancy in a changing world.

The EGBAR Foundation

EGBAR

Additional

2012 MonetaryDonations

EGBAR

Additional

2013 Monetary Donations

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$140,000

$120,000

$100,000

$80,000

$60,000

$40,000

$20,000

$102,000

$66,775

$136,250

$101,001



Distributor SpotlightTODO USO, SA has been a Simple Green distributor since 2001. Sugar cane mills comprise a significant portion of Guatemala’s industrial sector and when distributor Marta Julia Carrillo found out that harsh solvents were used in mill cleaning applications, she resolved to make a difference by educating operators about the harmful environmental impact of these solvents and offered the Simple Green line of products as an environmentally safer alternative. Employing a grassroots educational approach and spreading a message of environmental preservation

...when distributor Marta Julia Carrillo discovered that harsh solvents were used in mill cleaning applications, she resolved

to make a difference by educating operators about the harmful environmental impact of these chemicals...

and occupational health and safety, TODO USO, SA has since convinced many other business owners to follow suit, including equipment suppliers, refineries, laboratories, plant operators in electricity, automotive and mining, and even hotels and restaurants, preventing unsafe industrial chemicals from entering the environment, while creating safer conditions for Guatemalan workers. With passion and persistence, TODO USO, SA and Marta Julia exemplify SMI’s entrepreneurial spirit and our commitment to social and environmental responsibility across the globe.

Sugar cane harvesting in Santa Lucia Cotzumalguapa, Guatemala.© Photo by Raul Uribe, Grupo Tecun

CEO Statement..............................................4Overview..........................................................6 Our Business Governance & Ethics About this ReportSustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Distributor Spotlight Simple Green Australia...............................46Embracing Our Future.................................48GRI Content Index.........................................50Assurance Statement..................................56


Simple Green Australia

“We are proud to use Simple Green products on board. It makes our life easier and safer, as well as

the delicate environment we are protecting, the OCEAN!”

- Gwendal LeTutour, Chief Engineer,MY BOB BARKER


CEO Statement..............................................4Overview..........................................................6 Our Business Governance & Ethics About this ReportSustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Distributor Spotlight Simple Green Australia...............................46Embracing Our Future.................................48GRI Content Index.........................................50Assurance Statement..................................56

Simple Green Australia (SGA) is an independent partner of Sunshine Makers, Inc. and yet, an integral part of our global family. Even though SGA is outside of the reporting boundary, it is an international success story and an important part of our company’s history. With its beginnings in New Zealand in 1988, SGA now serves the Australian and New Zealand markets. Simple Green Australia receives corporate regulatory, design and sustainability support, but manages its own supply chain, including one manufacturing partner, and all aspects of distribution, sales and marketing.

The development of Simple Green’s corporate Sustainable Business Policy in 2013 generated dialogue around formalizing social responsibility and environmental stewardship efforts in New Zealand and Australia, although informally, the team has long been committed to continuous improvement in these areas as demonstrated by initiatives like

• waste segregation and diversion

• reducing imports for the industrial product line by 80% in 2013 over 2012

• using refurbished drums and totes to package industrial products

Due to the modest size of our Australian team, some of the challenges we have to overcome include the tracking of environmental metrics, preparing a greenhouse gas inventory, engaging stakeholders in sustainability strategy-setting, developing meaningful targets, monitoring our progress year-over-year, and increased reporting of our sustainability efforts to the public. We are working diligently on these initiatives and hope to begin implementing most of them by 2016.

In 2013, Simple Green Australia supported several environmental and community programs and events, including significant product donations to Sea Shepherd Australia, as well as donations to Relay for Life and local schools.

Sea Shepherd Crew Member © Simon Ager, Sea Shepherd Australia



Embracing Our Future

“Many of our customers in the U.S. and around the world recognize the continual changes

that are occurring in our communities. We all must adapt our behavior to ensure that we have sufficient resources to sustain our businesses as

well as our quality of life.”- Pat Sheehan, Executive Vice President, Global Sales



The risks posed by climate change and resource scarcity are no longer a future possibility, but a present challenge that all businesses must address in the interest of continuity. We have taken the first step by strategizing our approach to sustainability within our own four walls and wherever we can exert influence externally.

This leaves us with a number of ambitious goals we strive to accomplish by 2020. We are still in the process of refining our five-year objectives, wherefore this report focuses on 2014 targets. However, our 2014 report will provide a comprehensive view of our 2015 + 5 goals and performance indicators as they relate to supply chain transparency, product development, sustainability management, resource optimization and community initiatives.

Changing systems, processes and minds takes time, resources and commitment to learning. However, in an era where sustainability is no longer about prevention, but about managing multiple confounding risks, a sense of urgency is critical as well. Balancing these factors, while continuing to provide economic benefit to our team, our communities, our customers, and our many business partners, is perhaps the most complex task ahead of us.

With optimistic pragmatism and a commitment to remain true to our mission, we embrace the opportunity to improve the way we operate at the core. We invite readers of this report to engage in dialogue with us in order to help us along our journey.

Publish 1st annual corporatesustainability report10% process & facility water reduction over 2012 baseline

10% energy reduction over 2012 baseline

10% GHG emissions reduction over 2012 baseline

50% landfill waste reduction at HQ

2014 Goals

. . . in an era where sustainability is no longer about prevention, but about managing multiple confounding risks, a sense of

urgency is critical. . .



GRI Index

Clicking on a “section in report” item will take you to the corresponding page within the report.

Gen

eral

Sta

ndar

d D

iscl

osur

es (C

ore)

Section Title GRI Disclosure Description Section in Report (page) Omissions Assurance

Strategy & Analysis G4-1 CEO Statement CEO Statement (4) X

Organizational Profile

G4-3 Name of the organization Our Business (7) X G4-4 Primary brands, products and services Our Business (8) X

G4-5 Location of the organization’s headquarters Our Business (7) X

G4-6 Countries where the organization operates, and where the organization has significant operations

Our Business (7) X

G4-7 Nature of ownership and legal form Our Business (8) X G4-8 Markets served Our Business (7) X

G4-9 Scale of the organization Our Business (8)

SMI is a private company and does not publicly disclose revenue or capitalization.

G4-10 Workforce composition The Sunshine Makers (37) X

G4-11 Percentage of total employees covered by collective bargaining agreements The Sunshine Makers (37)

G4-12 Description of the organization's supply chain Our Supply Chain (13)

G4-13 Significant organizational changes

No significant changes occurred during the reporting year.

G4-14 How the precautionary approach is addressed by the organization

Sustainability Management (11) X

G4-15 External charters or principles the organization subscribes to About this Report (9) X

G4-16 Memberships or associations Sustainability Management (11) X

Identified Material

Aspects and Boundaries

G4-17 List of corporate entities Our Business

SMI is a private company and does not have a publicly available financial statement to disclose its

X

GRI Index

Clicking on a “section in report” item will take you to the corresponding page within the report.



Identified Material

Aspects and Boundaries (cont.)

entities.

G4-18 Defining content and setting Aspect Boundaries About this Report (9)

G4-19 Material Aspects identified in the process for defining report content

Stakeholder Engagement (19) X

G4-20 Aspect Boundary for each material Aspect within the organization Content Index X

G4-21 Aspect Boundary for each material Aspect outside of the organization Content Index X

G4-22 Restatements for previous reports Not Applicable - First Report

G4-23 Significant changes from previous reporting periods

Not Applicable - First Report

Stakeholder Engagement

G4-24 Stakeholder groups engaged by the organization

Stakeholder Engagement (18)

G4-25 Basis for identification and selection of stakeholders with whom to engage


G4-26 Approach to stakeholder engagement Stakeholder Engagement (17) X

G4-27 Key topics and concerns that have been raised through stakeholder engagement and responses


Report Profile

G4-28 Reporting period About this Report (9) X

G4-29 Date of most recent previous report Not Applicable - First Report

G4-30 Reporting cycle About this Report (9)

G4-31 Contact point for questions regarding the report Back Cover

G4-32 "In accordance" option About this Report (9) X

G4-33 External assurance process Assurance Statement (53)

Completed by ISOS Group [See Assurance Statement for details]

Governance G4-34 Governance structure of the organization, including committees Governance & Ethics (8)

Ethics & Integrity G4-56 Values, principles, standards and norms of behavior Governance & Ethics (8) X

Spe

cific

S

tand

ard

Dis

clos

ures

(C

ore)

Section Title GRI Disclosure Description Section in Report (page)

Generic Disclosures on Management

Approach G4-DMA

Organization's management of economic, environmental, and social impacts of material Aspects

Reported in conjunction with each Aspect X



Aspect Indicator Description (Boundary*) Section in Report (page)

Cat

egor

y: E

cono

mic

Economic

Performance G4-EC2 Risks and opportunities posed by climate change (A-D)

Our Changing Climate (24)

Costs of actions taken to manage the risks or opportunities were not reported.

X Partial – all but "Costs of actions taken to manage the risks or opportunities" have been disclosed and verified.

Procurement Practices G4-EC9

Proportion of spending on local suppliers at significant locations of operation (A, B)

Our Supply Chain (14)

Materials G4-EN2 Percentage of materials used that are recycled input materials (A, B)

Materials, Products and Waste (29)

Energy

G4-EN3 Energy consumption within the organization (A) Energy (32) X

G4-EN4 Energy consumption outside of the organization (B) Energy (32) X

G4-EN5 Energy Intensity (A, B) Energy (32) X G4-EN6 Reduction of energy consumption (A) Energy (32) X

Water

G4-EN8 Total water withdrawal by source (A, B) Water (33) X

G4-EN10 Percentage and total volume of water recycled and reused (A, B) Water (33)

3.3% of water supply within our supply chain has not yet been evaluated

X

Biodiversity G4-EN11

Operational sites in or adjacent to areas of protected areas/areas of high biodiversity value (A, D)

A Wildlife Refuge at our Doorstep (34) X

Emissions

G4-EN15 Direct greenhouse gas emissions - Scope 1 (A)


Fugitive emissions from R-22 have been excluded.

X

G4-EN16 Energy indirect greenhouse gas emissions - Scope 2 (A)

Our Changing Climate (27) X

G4-EN17 Other indirect greenhouse gas emissions - Scope 3 (A, B)


Scope 1 and 2 emissions and supplier fugitive emissions from refrigerants are unaccounted for

X



due to unavailability of data. Reported data covers >95% of production from suppliers.

G4-EN18 Greenhouse gas emissions intensity (A, B)


G4-EN19 Reduction of greenhouse gas emissions (A, B)


Effluents & Waste G4-EN23 Total weight of waste by type and disposal method (A)

Materials, Waste and Products (30) X

Products & Services G4-EN27

Extent of impact mitigation of environmental impacts of products and services (A)

Materials, Products and Waste (30) X

Compliance G4-EN29

Fines and sanctions for non-compliance with environmental laws and regulations (A)

None during the reporting period X

Supplier Environmental Assessment

G4-EN32 Percentage of new suppliers screened using environmental criteria (B, C) Our Supply Chain (13)

SG did not contract new suppliers, but screened 3% of existing Tier 1 suppliers and six existing Tier 2 suppliers in 2013.

X

G4-EN33 Negative environmental supply chain impacts and actions taken (A-D) Our Supply Chain (13)

X Partial- the percentage of suppliers assessed and outcomes provided, though actual or potential negative outcomes have been omitted.

Cat

egor

y: S

ocia

l

Employment G4-LA1 New hires and employee turnover (A) The Sunshine Makers (38) X Occupational Health

& Safety G4-LA6 Workplace injuries and illnesses, lost

days and absenteeism (A) The Sunshine Makers (38) X

Training & Education G4-LA9 Average training hours per year per

employee (A) The Sunshine Makers (38) X



G4-LA11 Performance reviews and career development (A) The Sunshine Makers (38) X

Diversity & Equal Opportunity

G4-LA12 Composition of governance bodies and breakdown of employees per employee category (A)

The Sunshine Makers (38) X

Supplier Assessment for Labor Practices

G4-LA14 Percentage of new suppliers screened using labor practices criteria (B, C) Our Supply Chain (13)

Non-Discrimination G4-HR3 Incidents of discrimination and

corrective actions taken (A) The Sunshine Makers (38) X

G4-HR10 Percentage of new suppliers screened using human rights criteria (B) Our Supply Chain (13)

Local Communities G4-SO9 Percentage of new suppliers screened using criteria for impacts on society (B, C)

Our Supply Chain (13)

Customer Health & Safety

G4-PR1 Product categories for which health and safety impacts are assessed for improvement (A)

Our Customers (42)

G4-PR2 Non-compliance with regulations and voluntary codes concerning product-related health and safety impacts (A)

Our Customers (42) X

Product and Service Labeling G4-PR4

Non-compliance with regulations and voluntary codes related to product labeling (A)


Marketing Communications

G4-PR7 Non-compliance with regulations and voluntary codes related to marketing communications (A)


G4-PR8 Complaints regarding breaches of customer privacy and losses of customer data (A)

Our Customers (42)

*Boundary identifiers: (A) Directly pertaining to SMI operations; (B) Pertaining to first tier suppliers (i.e. suppliers SMI directly compensates for products and services); (C) Pertaining to supply chain tiers below level 1; (D) Pertaining to segments of the value chain affecting or influenced by customers and the community

CEO statement...............................................4Overview..........................................................6 Our Business Governance & Ethics About this ReportSustainability Management....................10Our Supply Chain.........................................12Stakeholder Engagement........................16Taking Care of our Planet..........................22 Our Changing Climate Products, Materials, and Waste Energy Water A Wildlife Refuge at our DoorstepTaking Care of People..................................36 The Sunshine Makers Our Communities Our Customers The EGBAR Foundation Simple Green AustraliaEmbracing Our Future.................................46GRI Content Index.........................................48Assurance Statement..................................5455Simple Green 2014 Sustainability Report

Assurance Statement

Scope of Assurance ISOS Group [“Assurance Provider”] has been commissioned by the management of Sunshine Makers, Inc./Simple Green [“SMI”, “Company”] to conduct a limited assurance engagement on its inaugural 2014 Sustainability Report [“Report”] covering the period of January 1, 2013 to December 31, 2013. The scope of our assurance covered the GRI General Standard Disclosures and a selection of GRI Specific Standard Disclosures [“Subject Matter” or “Performance Indicators”] in the areas of the Environment, Human Rights, Labor Practices and Decent Work, and Product Responsibility. Disclosures analyzed occur in facilities owned, leased or from which products are derived [“Operational Control”]. All financial information, project-based reductions, year-over-year and/or to baseline have been excluded from the scope of this arrangement. Objectives The objective of the assurance engagement was to independently express conclusions on the Subject Matter as defined within scope, validate claims and analyze the final presentation of disclosures in accordance with the Global Reporting Initiative’s G4 Guidelines.

Criteria for Assurance and Level of Assurance Procedures selected were based on the Assurance Provider’s judgment and experience. The focus of all work performed was whether any matters have come to our attention causing us to believe that the material data found in SMI’s 2014 Sustainability Report has not been prepared in accordance with the Global Reporting Initiative’s G4 Guidelines, the GHG Protocol (WBCSD/WRI, 2004), ISO 14064-3:2006 (“Specification with Guidance for the Validation and Verification of Greenhouse Gas Assertions"), and in adherence to the AA 1000AS Principles of Inclusivity, Materiality and Responsiveness for underlying processes. A materiality threshold of 5% was set for the review of GHG emissions assertions. All other tasks performed had to meet an “acceptable” level of quality to surpass sampling exercises.

Methodology To form our conclusions, we undertook the following activities:

reviewed SMI’s data, information systems and methodologies for collecting, aggregating, analyzing and reviewing information used to summarize annual performance; performed process interviews with relevant personnel from SMI responsible for determining management approach, strategy and intervention; evaluated underlying process for determining critical issue areas, relevant stakeholders to engage and the overall materiality process; reviewed several drafts of the Report along with supporting evidence to determine accuracy and credibility of the disclosed; observed methods for corrective action and the institutionalization of sustainability; and A sampling of global sites required additional interviews and in-detail evaluation of supporting systems and original sources of data.

The activities were performed from June through July 2014.

External Assurance Statement

GRI Level: G4 Core “In Accordance”

“Executive Summary”



Conclusions Based on the assurance procedures conducted, nothing has come to our attention that causes us to believe that SMI’s sustainability-related strategies or claims made per the chosen Subject Matter are materially misstated. Therefore, we confirm that the GRI requirements have been met for the Core “In Accordance” Report issued by Sunshine Makers, Inc./Simple Green. SMI not only took immediate action to bring closure to issues uncovered during the assurance engagement, but further demonstrated its commitment to its mission and operating principles by developing an exemplary strategic communication piece. Continued success will be dependent upon expanding tracking mechanisms, constructing detailed guidance for employees and partners, while also broadening engagement throughout the value chain.

Statement of Independence ISOS Group is an independent professional services firm that specializes in sustainability reporting under the Global Reporting Initiative (GRI) and providing external assurance services. The Assurance Provider’s team members have not been involved in the development of the Report nor have they been associated with SMI’s sustainability program, data collection or processes. We conducted this assurance engagement independently and, to our knowledge, there has been no conflict of interest. ISOS Group ensures that the assurance team possesses the required competencies, maintained neutrality and performed ethically throughout the engagement. Further information, including a statement of competencies can be found at: www.isosgroup.com.

Signed on behalf of ISOS Group San Diego | July 22, 2014

Nancy Mancilla Project Lead

Alexandru Georgescu Quantitative Analysis Lead

Christina Schwerdtfeger GHG & Environmental Analyst

Assurance Statement (continued)

Thank you for joining my lovely wife ViViana and me on our exciting journey towards a sustainable future.

Bruce P. FaBrizio

Global Headquarters15922 Pacific Coast HighwayHuntington Beach, CA 92649

800-228-0709

Satellite Offices8725 West Higgins Rd.

Suite 750Chicago, IL 60631

820 S Walton Blvd Suite 15

Bentonville, AR 72712

For questions or comments about this report, please email our Director of Sustainability, Constanze Duke, at

[email protected]

SimpleGreen.com#SimpleGreen

Sustainability Report 2014

http://www.simplegreen.com

Documents

Download our 2014 Corporate Sustainability Report