2017 Gaia Herbs Sustainability Report

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Sustainability From Seed to Shelf 2017


Valerian Gaia Farm

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Letter from the Gaia Sustainability Team Since starting Gaia in 1987, our CEO and founder Ric Scalzo has been committed to working with nature to provide people with the best quality herbal supplements. Our business decisions continue to be guided by our values and our commitment to people, planet and purpose — not by profits alone. Growth at Gaia goes beyond profit and the typical “bottom line.” When looking at overall company success, we ask ourselves: How have we as a company listened to our employees — and how can we do more? How have we grown to give back to the community? How have we grown to care for the earth? This is the growth to which Gaia has aspired, and we’ve developed our business practices to be aligned with the inherent wisdom of nature, to cultivate economic opportunity and social well-being in the communities we work in, and to foster the welfare of our employees across the country. In our second-annual Sustainability Report, we outline the commitments we make to our employees, our partners, our customers and our earth. These commitments offer a promise that the cycle of life will not be broken and that there will always remain a continuity of relations that will, if given the opportunity, provide us with the ability to achieve true health and wellness.

Our Commitments: 1. Practice Regenerative Farming

5. Foster Ecological Conservation

2. Support Employee Wellness

6. Encourage Recycling & Waste Reduction

3. Positively Impact communities

7. Promote Watershed Health

4. Encourage Biodiversity Thank you for being a part of this journey. Sincerely, The Gaia Herbs Sustainability Team

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Practice Regenerative Farming Regeneration is the process of renewal and restoration that makes life and ecosystems resilient to natural fluctuations or events that cause disturbance or damage. Regenerative concepts take sustainability to the next level, moving from “doing less bad” to actually “doing good” for people and planet.

on the time of year, we have anywhere from 30 to 75 acres of cover crop

We continue to steward 350 acres of Certified Organic medicinal herbs,

the greenhouse gases that are causing climate change. At the same

fruits and vegetables, with 260 acres in active production. Depending

time, they are one of the most powerful tools we have to potential-

Fights climate change organically rich soil stores carbon from the atmosphere

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growing to preserve the microbiology of the soil. Through regenerative organic agricultural practices like cover cropping, we encourage the earth’s symbiotic systems to maintain the ecological health of our farm. Agricultural methods are one of the most significant contributors to

Produces nutrient dense plants plants are better able to aborb the nutrients in the soil

Promotes crop resiliency plants are more resistant to droughts, floods, and pests


ly reverse climate change. Conventional industrial farming practices

causing severe climate damage. Regenerative agriculture allows us

like mono-cropping, deep tilling and overuse of pesticides expedite

to put this carbon back into the ground. More carbon in the ground is

the erosion of vital topsoil, killing off the microorganisms that help

good for us; it creates healthier soil full of microorganisms, creating a

build soil carbon and allow the soil to serve as a natural “carbon sink,”

more biodiverse ecosystem that is able to store more water – creating

by drawing carbon released into the atmosphere back into the earth.

plants that are most nutrient dense and more resistant to drought.

It’s all about balance: Carbon is the building block of life, but human activity has severely disrupted this balance, heating up our planet and

Encourages biodiversity soil microbes and mammals thrive in organic settings

Protects the purity of groundwater no chemical runoffs into local watersheds

Secure supply chain yields can be significantly higher than monoculture farming

Benefilts of regenerative farming 5


Gaia Farming By the Numbers

77%

2,450,000

total pounds of CO2 captured by farming our land organically

of total herbs used is Certified Organic

828,723

pounds of organic herb purchased in 2016

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157,131

pounds of raw material harvested from the Gaia Farm

260

acres in production on the Gaia Farm


155

470

varietals of organic fruits and vegetables to be planted on the farm in 2017

247

employees receiving fresh produce from the Gaia farm

40,100

pounds of fruits & vegetables shared with our workers in 2016

pounds of seed saved from Gaia Farm in 2015-2016

$608

estimated value of Certified Organic produce given to each employee annually

Marchmallow Gaia Farm 7


Seed Saving The future of seeds is dependent on active participants in the farming community saving their seeds. Over the last century, we have seen a major decrease in seed diversity, skills and knowledge to keep this diversity alive and growing. Genetic diversity in our seed supply chain is essential for the future of both medicinal herbs and nourishing food. Gaia has recently become a Business Member of the Organic Seed Alliance and strives to bring together other stakeholders, including scientists and farmers, across the Southeast and the nation. The goal is to create more training and education to develop future seed stewards, particularly for medicinal herbs. With increased knowledge and research, we can create a secure supply chain of medicinal herb seeds that will ensure future generations can enjoy the bountiful power of these plants. Medicinal herbs in particular face an uncertain future. Now more than ever, we need to save our seeds to ensure that we can continue being stewards of nature’s pharmacy.

Why we save seed Seed Integrity: With consistent quality, we ensure the phytochemical activity and yields of plants by saving seed from the best producing plants, year after year. Regional Adaptability: We are gradually developing varieties that are better adapted to our unique growing conditions on the Gaia Farm. Monetary savings: We reduce the amount of seed we need to buy. Seed Security: Hundreds of varieties of seeds have been lost over the years due to large seed corporations only focusing on a handful of varieties. By saving seed, we are not relying on the larger seed trade, but we are stewards of our own supply and can depend on growing future generations of medicinal herbs.

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Echinacea angustifolia Gaia Farm

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Support Employee Wellness Our people are our strength, and to us, they are more than workers ­â€” they are family Employee Wellness Program Each year, we dedicate 10-12

meditation, and yoga. Employees can track these activities in their

acres of our farm to growing organic produce for our employees to take

personalized online wellness portal and will receive wellness points

home through our free produce program, offered three days a week.

that will result in a discount in their insurance costs. 2016 also saw

In 2016, we hired a Gaia Wellness Chef, who lovingly prepares healthy,

the introduction of educational farm walks for employees to partici-

nourishing meals twice a week for our employee lunch program. These

pate in throughout the growing season. Offered at different times of the

meals are donation based, with proceeds going towards the Golden

day, employees have the opportunity to gain wellness points and learn

Courage Foundation where serving nourishing food is a central tenant.

more about the herbs on our farm and the farming practices we use.

Connecting with nature, with our farm, and with each other is a central element of our Wellness Program. We encourage employees to

Employee Benefits Improvement Developed in 2016, our

incorporate wellness practices into their daily lives, such as hiking,

People, Culture and Wellness Department has taken significant

strides to improve the well-being of our employees. We have imple-

choices that allow for prescription coverage, as well as a wellness

mented surveys using a digital platform to elicit team feedback on

program that was easier to use and a better reflection of our values

all areas of operations, especially benefits and insurance. Our ben-

as a health and wellness company.

efits and insurance survey yielded a record number of responses, allowing the Gaia Executive Team to more deeply understand what is most important to our collective team in these important areas.

We have made progress in all of these areas. Our 2017 insurance program offers three options, two of which have lower deductibles and co-pays. We also added an eight-week paid maternity leave and

We heard that employees wanted choices about insurance plan

a two-week paid paternity leave for new parents. These improve-

types. Our employees wanted access to full vision benefits, as well

ments are significant, but they don’t represent the end point. We will

as the ability to use insurance for some alternative and comple-

continue to evolve our benefits and insurance each year, looking for

mentary care, like acupuncture and naturopathy. They wanted plan

additional opportunities as our growth and financial health will allow.

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Alex Lapidus Wellness Chef at Gaia Herbs 11


Jason Simmons Bottling Tech at Gaia Herbs

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Certified Living Wage Employer

At Gaia, our people are our strength, and

their passion and commitment are reflected in all that we do. Gaia currently employs 281 employees, with 247 of them located in North Carolina, making Gaia the largest employer in Transylvania County. While day-to-day tasks may vary greatly amongst our emplees, what we all have in common is a commitment to creating the best quality herbal supplements and nurturing strong relationships between plants and people. Our people provide the soul of our business, which is why we have opted to become an official Living Wage Employer, certified by the Living Wage Coalition of Transylvania County, part of Just Economics, which is the nation’s largest advocacy group for the fair-wage movement. This designation reflects the values by which we at Gaia Herbs live and operate, and this supports our ongoing investment in our people, which helps to promote a sustainable and just future for our region. We are a proud member of the Businesses for a Fair Minimum Wage where we join companies like our neighbors at New Belgium Brewing as well as Ben & Jerry’s, Dr. Bronner’s and Seventh Generation “to support gradually raising the federal minimum wage to at least $12 by 2020. Paying a living wage means that people can get married, start a family, invest in higher education and contribute more to their community.” Paying a living wage is also a smart business move. Research shows that paying a living wage leads to more productive and engaged workers, and a higher retention rate. In the first three months of our certification, Gaia saw this to be true, with employee turnover dropping dramatically in the area of our business that had previously experienced the highest rates of departures. As Gaia prospers and grows financially, we want our employees to prosper and grow with us. As a leader in quality herbal supplements, we want to continue to attract a high-quality workforce, and paying a living wage is a tremendous part of that equation.

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Seedlings Gaia Farm 15


16 Blue Ridge Mountains North Carolina


Positive Community Impact Shaping the economic, ecological, and social vitality in communities across the globe Local Economic Impact The economic potential of all aspects

We are proud to share our learnings with our community and networks.

of the medicinal herb supply chain is strong. Training, educational

We partner with other organizations working toward a shared vision of

programs and peer mentor networks are key to developing this vision.

a healthier planet, where the connections between plants and people

We continue to work with universities, economic development agen-

is one of mutual benefit. In 2016-2017, groups such as the Boys & Girls

cies, nonprofits and other businesses to build skill sets that can grow

Club, the Southwest College of Naturopathic Medicine, the WNC Col-

our regional workforce — from scientists, teachers and practitioners

laborative Regional Alliance of Farmer Training and Brevard College’s

to farmers and entrepreneurs. We live these intentions of collabora-

Sustainable Agriculture program students came to the Gaia Farm to

tion and thought leadership in our daily work, and we strive to embody

learn about different aspects of the herbal supplement industry. These

these values in our interactions, creating a culture from the very roots

are just a few examples of the diversity of our partnerships that we

of our partnership that is grounded in what matters most: community.

continue to foster.

Appalachian Beginning Forest Farmer Coalition

ence and knowledge of sustainable harvesting and production of for-

Southern Appalachia, where Gaia is located, contains some of the

est-grown botanicals. Through training programs, forestland owners

most unique plants specific to our native microclimates. The Appa-

can develop skills to increase their economic income, at the same

lachian Beginning Forest Farmer Coalition is a network of forestland

time being stewards of this earth and ensuring there is a viable future

owners, universities, and governmental and non-governmental or-

for native plants of Appalachia.

ganizations that share a common goal of improving economic opportunities of agroforestry production and farming capabilities among forest farmers. Gaia Herbs is honored to serve on the advisory board of this group. The goal of our participation is to share our experi-

“All these connections, all these relationships, remind us how we are intimately woven together into a fabric of wholeness that sustains the very life that we live.”

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Turmeric is an important economic driver in remote villages of India.

Global Sourcing Impact

Gaia is committed to living our

authentically sourced and safely produced without the use of harm-

values through each aspect of our supply chain, including careful

ful pesticides and other toxins that damage the earth or our bodies.

evaluation of social and environmental impact. We are working with

We enable our customers to trace the journey of all of our products,

major trade organizations like the International Labour Organiza-

from seed to shelf.

tion, to set standards for our industry that reduce social and envi-

Regenerative Land Management: We promise to align our supply

ronmental harm and to educate consumers on the impacts of the products that they buy.

Responsible Sourcing & Operating Ethos

chain operations with long-term ecological stewardship of soil, which we value in both scale of land and scope of practices. Community Impact: We rely on the collaboration of our community partners to help achieve our vision. We share our learnings from our

Transparency & Traceability: We commit to full transparency and

programs with our partners and networks, in a collaborative effort to

traceability in our supply chain, enabling customers to utilize our

actively shape the world we live in.

MeetYourHerbsÂŽ platform to rest assured that our products were

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Bread of Life We are proud partners of Brevard’s local free community kitchen in Transylvania County, North Carolina

Our mission at Gaia Herbs is to nurture healthy

close to 8,000 pounds of organic produce to Bread of Life in

connections between plants and people. We create products that pro-

2016, making approximately 50 deliveries a year, and twice a week

mote health, but our work does not end there. We find and maintain

during growing and harvest season.

Social impact

strong local, regional and global relationships that impact the social good of communities throughout the world. We express our social mission through our responsible business practices and further carry this mission through the work expressed through our Gaia Cares efforts.

Golden Courage: Our work to support the non-profit Golden Courage International in China continues to expand. We raised an estimated $80,000 in 2016, including through a farm-to-table fundraiser that served to educate our local community on the “nourished life” philos-

Bread of Life: Gaia Herbs continues to support Bread of Life, the free

ophy of seasonal eating and bring attention to the important work of

community kitchen of Transylvania County. Bread of Life feeds ap-

Golden Courage International. Through education, holistic nutrition,

proximately 200 people a day, heavily relying on volunteers and dona-

connections with nature, and Chinese herbal medicine and traditional

tions. With 15% of the county’s population considered food insecure,

healing arts, Golden Courage International is giving children opportu-

the work of Bread of Life is incredibly important. Gaia Herbs donated

nities to flourish.

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Encourage Biodiversity Biodiversity is the foundation of a healthy ecosystem, and this healthy balance of biodiversity is mirrored in our physical health. From soil to the biodiversity of our own microbes in our bodies, we must encourage biodiversity to flourish. A biodiverse farm includes multiple plant, insect and bird species in addition to healthy soil teeming with microbes that nurture the overall ecosystem. Encouraging pollinators such as birds, bees, bats, beetles, butterflies and small mammals is an important way to encourage biodiversity on the Gaia Farm. Pollinators enable plants to make seed that is essential for their survival – and our own.

Pollinator Health Gaia grows a number of pollinator-friendly plants that are used in our products, ensuring the health of our 200 bee hives on the farm and encouraging more pollinators to thrive. We continue to explore ways to cultivate even more pollinator biodiversity. Each fall, millions of monarch butterflies begin their migration from the U.S. and southern Canada to Mexico, where they spend the winter before returning north. Monarch butterflies are one of the most important pollinators, but their annual journey and their future survival are threatened by habitat loss and the widespread use of herbicides and insecticides. In 2017, Gaia Herbs became a certified Monarch Waystation, providing necessary food and habitat for migrating monarch butterflies. This spring, we planted 52 swamp milkweed plants (Asclepias incarnata), a source of essential nectar for the butterflies and a place for them to lay eggs. We have future plans to expand the Gaia Farm’s role as a pollinator haven. Throughout this journey, we will encourage our community and consumers to act in ways that encourage pollinator health. Beyond butterflies and bees, we will keep developing our pollinator projects to provide habitats for invertebrates year-round. The benefit of these invertebrates is innumerable; we need pollinators to grow our food and herbs, as well as manage our farm through integrated pest management, an essential component of organic farming and an outcome of intentional pollinator-friendly plants.

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Monarch Butterfly on a milkweed plant 21


Foster Ecological Conservation To preserve our botanical diversity, we need to be active participants

like United Plants Savers and universities to create a new economy

in resource management. For Gaia, this is elucidated in our sourcing

based on ecological conservation, while supporting economic devel-

practices and our partnerships with other mission-aligned organiza-

opment. Networks like the Appalachian Beginning Forest Farmer

tions to conserve the ecological health of our planet.

Coalition will help us get there.

The unique microclimates in the mountains of Western North Caroli-

Western North Carolina is one of many regions experiencing the

na are home to hundreds of species of native plants and wildflowers

perils of overharvesting to meet the rising demand of herbal sup-

that can only be found in our region. Many of these plants have been

plements, and we are an energetic partner in the effort to conserve

harvested for centuries, and with a slow growth rate and continued

these precious ecological gifts. We continuously audit each ingredi-

land development, many of these plants are now considered “at-

ent in our supply chain to ensure that these herbs will have a viable

risk� and vulnerable to overharvesting. These plants contain potent

future and are not at risk of becoming endangered.

phytochemicals valued for an array of health needs. We join partners

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Native Plants: (Left to right) Solomon's Seal, Bloodroot, Wild Ginger, & Black Cohosh

Supporting our National Parks and Forests Our home

mountain bikers to Pisgah National Forest. These outdoor activities

in Southern Appalachia is a region beaming with natural wonder: The

encourage necessary engagement with nature, in addition to being

Blue Ridge Parkway runs close to the farm, Pisgah National Forest

a significant contributor to local economic development. Supporting

is located just five minutes away, DuPont State Recreational Forest

these events and the businesses that organize them demonstrates a

is our backyard, and the Great Smoky Mountains National Park is a

model to conserve our precious landscapes and boost economic ac-

quick trip to the west. We believe that these national and state trea-

tivity in our region. In spring 2017, we initiated a partnership with

sures need to stay in the hands of the public. In 2016 and 2017, Gaia

Great Smoky Mountains National Park and will be strengthening our

began to formalize partnerships to support the outdoor industry in

collaboration, including educational program development for native

Western North Carolina, an industry that is active in preserving our

plant conservation and event partnerships.

state and national parks. We sponsored the Pisgah Stage Mountain Bike Race, a five-day trail race that attracted hundreds of world-class

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519

tons of CO2 emissions saved from using biodiesel since 2010

2004

began research into plant-based, sustainable packaging (our EarthBottle canisters)

130,580

number of kilowatts saved by these packaging choices

717

number of trees saved annually by repurposing & recycling cardboard

Encourage Recycling & Waste Reduction In 2016, Gaia Herbs was named one of Inc 5000’s Fastest Growing Com-

ical balance, and this can be seen throughout our business operations.

panies in America. As we expand our mission to bring herbal and holis-

Overuse of paper is one of the most damaging activities to our planet.

tic wellness to more people, we recognize the increasing need to con-

Forests cover 30% of global land and are home to 70% of terrestrial an-

tinually be conscious stewards of our consumption as a business and

imals and plants, in addition to storing 283 billion tons of carbon in their

make decisions that align with our greater global vision. Gaia will always

biomass. Gaia Herbs knows that the responsible stewardship of these

commit to supporting land stewardship practices that promote ecolog-

forests is essential for the future of our planet, animals and people.

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50,239

189,551

gallons of conventional diesel saved by switching to biodiesel in 2010

gallons of waste water saved due to eco-friendly packaging

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Tons of CO2 emissions saved by these packaging choices

2,403

cubic feet of landfill space saved by our packaging choices

50,239

gallons of conventional diesel saved by switching to biodiesel in 2010

All Gaia Herbs product cartons seen on the stores shelves are made

more environmentally friendly alternative to paper made from trees. We

from a Rock-Tenn product called Angel Bright, which is made from 100%

continue to work with Pratt Industries for our shipping boxes, working in

recycled materials and certified by the Forest Stewardship Council. We

a closed-loop system that not only saves forests from deforestation but

use TreeZero™ paper as our standard copy paper. TreeZero™ is a no-

also saves water, reduces landfill waste and saves CO2

tree, carbon-neutral source of paper made from bagasse, a dry pulpy residue left after the extraction of juice from sugar cane. This is a much

** The numbers above are annual.**

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Promote Watershed Health The French Broad River watershed begins in the mountains surrounding the Gaia Farm. The pristine waters of Cathy’s Creek run from Pisgah National Forest through the Gaia Herbs’ Farm where it flows into the French Broad River. The French Broad River is the 3rd oldest river in the world, and the surrounding watershed is composed of 2,830 square miles of land in the mountains of Western North Carolina. It is home to numerous endangered and at-risk plants and animals, in addition to being the main source of drinking water for over 1 million people. Managing the health of Cathy’s Creek is an integral part of our overall operations at Gaia Herbs. The major water quality issues of the French Broad River watershed include sedimentation, streambank erosion, loss of riparian vegetation, and agricultural run-off. Because Cathy’s Creek borders the Gaia Farm, we are continuing to evaluate ways that we can contribute to the long-term health of this watershed. We design our farm beds in a way that is sensitive to flooding and sedimentary outflow, reverting excess water into flood resistant areas, rather than extra sediment flowing into the creek. We are currently evaluating a project to restore the riparian buffer zones along Cathy’s Creek, which will in turn enhance water quality, prevent streambank erosion, and reverse riparian vegetation loss.

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Cathey’s Creek, an important tributary to the French Broad, flows through the Gaia Farm

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We test millions of plants each year; the results for every single batch are available via MeetYourHerbs.com, our online traceability platform. Maintaining the herb’s entire chain of custody guarantees that the products we make are of the highest quality, and it allows us to uphold our mission, vision and values from seed to shelf.

Hawthorn / Cover Photo: Echinacea Gaia Farm


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