2021 Sustainability Report

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Hands on TH E FUTURE Sustainability Report 2021 Quintis Sandalwood


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Sustainability Report 2021

Contents

Chapter 1

Our Vision

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Chapter 2

Our Mission

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Chapter 3

Sustainability by Numbers

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Chapter 4

CEO’s Report

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About this Report

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Chapter 6

Our Operations

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Chapter 7

Our Products

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Chapter 8

United Nations Sustainable Development Goals

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Chapter 9 Our Hands-On Approach to Sustainability Goal 1: Reduce our Impact on the Environment Goal 2: Improve Wellbeing Goal 3: Educate the Leaders of Tomorrow Goal 4: Champion Equal Opportunity for All Goal 5: Demonstrate our Commitment to Governance Goal 6: Empower local Communities to be Sustainable

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Glossary

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Our V IS ION

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Our Vision We are the global leaders in the sustainable supply of pure Indian sandalwood, a once-endangered species with untold wellness benefits. Our vision is to unearth even more benefits of this wellbeing ingredient, sharing its potent healing properties throughout the world and into the future.

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Our MI S S ION

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WE AR E Q UI N T IS SANDA LWO OD. PIO N E E RS . C U STO D I AN S . I NNOVATO RS .

Our Mission For the last 20 years, we have built an enduring commitment to the ethical supply of Indian sandalwood. Guiding our journey is a deep-rooted value system, that shapes who we are and what we do. Sustainability

Innovation and Collaboration

We care about creating a brighter, healthier future for sandalwood, the environment and communities within which we operate. We tread lightly by reducing our carbon footprint, opting for circular agricultural practices and taking a firm stance on ethical supply. With a strict chain-of-custody protocol, we can guarantee a renewable supply of sandalwood into the future.

Ever curious, we are committed to progressive research with scientific rigour to unearth new benefits and growth opportunities. With an open culture of collaboration, we recognise the power of partnerships in expanding the role of sandalwood across the wellness world.

Advocacy

Being upstanding corporate citizens is important to us. The values we live by in this sense are safety, trust, accountability, respect, and transparency. We hold ourselves and others to these standards.

We are committed to building sustainable human, ecological and economic systems and actively promote ‘the right way’ of doing things to protect our planet and its people. We are passionate advocates for fair work practices and are not afraid to call out wrongdoing such as product adulteration and illegal harvesting. Sustainability Report 2021

Corporate citizenship

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Sustainability BY NU MBERS

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Sustainability by Numbers

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The number of commitments made by the IFRA-IOFI sustainability charter, of which Quintis is a founding signatory.

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The IFRA-IOFI Sustainability Charter is a collective effort to raise the bar for sustainability in the fragrance and flavour industries, represented by the International Fragrance Association (IFRA) and the International Organization of the Flavor Industry (IOFI). Quintis is proud to be a founding signatory and member of the Sustainability Committee, which is a select group brought together to steer the Charter and other sustainability activities.

75%

The energy savings achieved with the introduction of our new continuous steam distillation technology.

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million The litres of scheme water we have saved since installing our water recycling and rainwater harvesting systems at our distillation facility.

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million+ The amount (AUD) we have invested in reducing our environmental footprint in our steam distillation facility in Albany.

1998

The year Indian sandalwood was added to the International Union for Conservation of Nature (IUCN) vulnerable species list due to illegal harvesting and over-poaching in its native lands.

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5.5+ million

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195,000

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The estimated tonnes of CO2 our mature trees remove from the Earth’s atmosphere each year. 1

The number of sandalwood trees that now thrive in our lush, sustainable plantations.

80%

The proportion of energy used at our distillation facility that is derived from a renewable source.

70+

The number of countries Quintis currently supplies product to.

100%

The proportion of our Indian sandalwood trees that are grown naturally, without growth enhancers.

80%

The number of locally employed people within Quintis’ Australian operations. ¹ Calculation based on estimated formula provided by the European Environment Agency, www.eea.europa.eu

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CEO’s R EPORT

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CEO’s Report In September, 2021, Botanic Gardens Conservation International (BGCI) published the results of its Global Tree Assessment. This was a 5-year study into the conservation status of every known tree species. The report’s shocking finding was that 30% of all tree species, a huge 17,510 species, are currently threatened with extinction. One of those species is Indian sandalwood (Santalum album), which has been on the ICUN Red List Threatened Species since 1998, and has continued to decline in population since last being assessed by the IUCN in 2018. Quintis was founded over 20 years ago with the purpose of saving this noble tree, which had been over-exploited for hundreds of years for its precious oil-bearing heartwood. Quintis established plantations, initially around Kununurra, in the beautiful Kimberley region of Western Australia. We planted our first Indian sandalwood tree in 1999 and have been dedicated to growing, managing and sustainably harvesting these trees ever since. Today, our plantation estate extends across the three states and territories of Australia’s far north, consisting of over 5.5 million sandalwood trees, on 12,000 hectares of land. Our goal is to become the world’s most trusted source of sustainable, ethical and high-quality Indian sandalwood materials used in a myriad of consumer products globally. For this reason sustainability, particularly in reference to plantation management, has always been at the heart of our strategy. Consumers globally are placing an increasing emphasis on the sustainability credentials of the products they buy. Nowhere is this trend clearer than in the personal care industry, where Sustainability Report 2021

the growing interest in natural ingredients has coincided with a much broader concern about unethical or unsustainable sourcing practices. The Internet has armed consumers with unprecedented information, allowing them to confidently advocate for products that genuinely meet their standards and expectations. Quintis’ customers – typically the consumer brands or manufacturers of these products – are responding with a demand for transparency which requires suppliers to provide clear evidence of their own supply chain practices and controls. Indian sandalwood oil is quickly gaining a reputation as an excellent active ingredient in the personal care space, with a range of proven benefits. As a vertically integrated grower and producer, Quintis is able to give its customers absolute and verifiable traceability and certainty about the source, manufacturing, growing practices and social impact of each ingredient. As a keen amateur beekeeper, I am very conscious of the value of preserving our fragile biodiversity. I am proud of the work Quintis has done in the past to save the Indian sandalwood species and about our plans for the future.

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In 2021 we reviewed our sustainability strategy, identifying three core themes that will form the pillars of our actions and initiatives into the future. These themes are closely linked to our stakeholders and represent material areas where we can drive a positive outcome for our business, our people, the communities where we operate and the planet. Carbon:

Community:

• Carbon is at the heart of our business. We estimate that our plantations sequester around 195,000t of CO2 every year and that Quintis as a whole, is strongly carbon net negative. The 2021 Glasgow Climate Change Conference (COP26) sharpened the focus for nations and businesses on greenhouse gas emissions; and while we are proud to be a net absorber of atmospheric carbon, we recognise that we still have opportunities to reduce our emissions across the business. We are committed to measuring and reducing our gross emissions over the lifetime of this plan.

• Quintis is a wellbeing company. Our products are renowned for their wellness benefits across physical, mental and spiritual domains. We care about the wellbeing of all our communities – our customers and consumers, our staff, our partners and our neighbours.

• We were delighted that plantation grown sandalwood has been included, for the first time, in the Australian Government’s carbon credits calculation methodology. We expect that this will help to attract more interest in Sandalwood as a sustainable investment option.

Sustainable Production: • Our goal is to maximise the efficient use of the resources we need to produce our products. We have already taken great strides to reduce the water and energy used – per kilogram of production – at our oil distillation plant in Albany, and we will look for opportunities to minimise waste across all our operations.

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• We work in some of the most beautiful and remote regions of Australia. Many of our plantation sites contain areas of high conservation value and/or particular cultural or religious significance to local Indigenous people. We see this as a great privilege and a weighty responsibility to protect and preserve these specific ecosystems and environments alongside local communities. • Wherever we operate, we seek to make a positive impact on the communities and environments that we interact with. We are committed to promoting and role modelling a fairer and more inclusive society. Our sustainability strategy review also included an ongoing commitment to the highest global standard of sustainable and ethical forestry plantation management. To demonstrate this commitment, we are on the path to achieving certification from the Forest Stewardship Council (FSC) which sets standards on products produced from trees, and ensures that the environment and communities were protected during the process.

Sandalwood is a hemiparasitic tree species which relies on a number of different host trees throughout its life to provide it with much of its water and nutritional needs. As a result of this, each of our plantations is a vibrant multi-species forest, rather than a monoculture. There is a growing realisation in the forestry industry of the benefits of a multi-species plantation, particularly in regards to ecology and forest health. By caring for and nurturing these forests, we are delivering benefits across multiple dimensions – we create economic value for our customers, team members, suppliers and local communities as well as our shareholders. At the same time, we are acting as responsible stewards of the land and local environment, and contributing to the global effort to reduce atmospheric carbon dioxide. For Quintis, sustainability is about so much more than Environmental, Social and Governance (ESG) factors. It’s about building a truly sustainable business, which has been our passion, and at the heart of our strategy, for over two decades. We have now reached a scale and level of development where these foundations are delivering real and tangible benefits. We recognise however that there is much more to be done. This report represents a celebration of our achievements to date, but more importantly, our commitment to continuous improvement against the three pillars of our new sustainability strategy.

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About this R EPORT

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About this Report The quest for sustainability is how our story began.

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Quintis was born of tenacity in the vast and challenging terrains of Australia’s tropical north. At the time, Indian sandalwood grown in the wild was on the cusp of global extinction, plagued by years of over-exploitation, resulting in it being listed as a vulnerable species in 1998 by the International Union for Conservation of Nature (IUCN). We took it upon ourselves to secure an ethical and sustainable supply of this ancient tree, planting our first seedlings under broad skies in red soils, identified as the perfect place for it to flourish. Now, through over 20 years of careful cultivation, research, and innovation, we have established ourselves as the global leaders in ethical and traceable sandalwood. We manage an expansive 12,000-hectare estate where more than 5 million

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Indian sandalwood (Santalum album) trees thrive, and we work with local suppliers in Western Australia to procure legally sourced Australian sandalwood (Santalum spicatum/Fusanus spicatus). We process the wood, turning it into an array of products at our processing facilities in Albany and Kununurra, where we are constantly reviewing and refining our manufacturing processes to minimise our impact on the environment and maximise our contribution to the local communities. As foresters, we take our role as stewards of the earth seriously. Inspired by the Indigenous perspective of the earth as a never-ending cycle of growth and care, we aim to give where we take, seeking innovative solutions to reduce our footprint and add value. We are proud that we have helped

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reintroduce native birds, mammals and insects into areas where they were lost and ensure processes are in place to minimise disturbances to habitats that exist in our plantations. We have implemented award-winning water-saving systems, created jobs in regional areas, and supported community initiatives. Yet, there is still much to be done. We began our sustainability journey many years ago, a journey that has changed and evolved in response to the world around us. As we look ahead to the next decade, we are excited to document the continuation of this journey, and our commitment to achieving business outcomes, without compromising our community, environment, or our people. This report outlines our commitment to sustainability; to being today’s best, and tomorrow’s better.

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Our OPE R ATIONS

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Our Operations Quintis has global representation with the bulk of its operators based in Australia.

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Perth Australia

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Katherine Australia

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Burdekin Australia

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Our PRODU CTS

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Our Products Our Indian sandalwood trees thrive through a botanical collaboration between host plants, foresters, and the ideal soil conditions. We craft our Indian sandalwood products from the aromatic heartwood, which is the oil-bearing core of the tree. When the tree reaches maturity, we harvest and process each tree with care to begin a new life as globally certified oil, chips, heartwood logs or powder. Tracing the origins Every Indian sandalwood product has an origin story – for each product we can tell you which trees make up the supply. We can even tell you the date the trees were planted and where they grew based on unique job numbers applied to each harvest. Provenance is vital in a global economy and understanding the legitimacy of our supply gives our clients a direct channel to connect with land and culture. This chain of custody extends to our production phase where job numbers translate into batch numbers. These batch numbers follow every sample and order dispatched to the client ensuring legitimacy and providing traceability at every stage.

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Working with the Forest Products Commission (FPC), we can also ensure the legitimacy and origin of our Australian sandalwood oil products. The FPC regulates the growth, harvesting and replanting of this native resource. As part of its regeneration program, each year the FPC disperses more than 5 million seeds across approximately 20,000 hectares of land using a natural dispersion process inspired by the native woylie, an animal known to collect and hoard Australian sandalwood seeds, burying them in shallow diggings. The FPC also engages Indigenous Australian contractors to plant these Australian sandalwood seeds across various locations. 18


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More than just a fragrance Reduces anxiety

Increases alertness

Calms the autonomic nervous system

Assists with sleep quality

Protects skin against blue light and pollution

Purifies the mind

Balances circulatory, digestive, respiratory & nervous systems

Enhances meditation & connection with the divine

Most commonly known for its soft woody fragrance, Indian sandalwood oil is also a multi-functional ingredient with therapeutic benefits. It has been proven to calm the mind, and protect and nourish the skin, due to the high presence of alpha and beta santalols. Indian sandalwood has been used traditionally in cultures across the world including Traditional Chinese Medicine, aromatherapy and Ayurveda, due to its ability to heal a diverse range of skin and medical problems. Some cultures attribute spiritual significance to sandalwood, used by Buddhists in incense to promote focus during meditation and by Hindus who apply sandalwood paste as a means of purifying themselves.

Reduces signs of ageing

Brightens and soothes the skin, and evens skin tone

Evokes nostalgia

Reduces the appearance of skin conditions

Harmonises vital internal energies

Studies show that Indian sandalwood oil has antiinflammatory, anti-tyrosinase and anti-microbial properties. And in 2021, research commissioned by Quintis found that sandalwood oil is a more potent antioxidant than Vitamin E in protecting against the effects of blue light and pollution.²

2 Francois-Newton, V., Brown, A., Andres, P., Mandary, M., Weyers, C., Latouche-Veerapen, M., Hettiarachchi, D., 2021, ‘Antioxidant and Anti-Aging Potential of Indian Sandalwood Oil against Environmental Stressors In Vitro and Ex Vivo’ Cosmetics, 8(2), 53

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Indian sandalwood oil captures the essence of the tree itself: hearty, grounding and complex. It has distinctive aromatic characteristics that are irreplaceable. With over 125 constituents, every single one – even the most minute – is naturally created, giving the oil its signature woody, creamy aroma. Our Indian and Australian sandalwood oils are steam-distilled, locking in the oil’s most potent volatiles.

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The anatomy of sandalwood consists of three layers of wood. The outer layer, or the sapwood, encircles the transition heartwood, which surrounds the aromatic heartwood in the centre.

Pure heartwood is ground to a fine powder to unlock its rich fragrance. The powder contains over 3% pure sandalwood oil which is considered to have therapeutic benefits.

We are proud to offer natural and certified pure Indian sandalwood heartwood logs worldwide. We grade our sandalwood logs according to colour, form and size.

In cosmetics, Indian sandalwood powder reduces the appearance of fine lines, mattifies and evens skin tone. It feels luxurious on application and provides a soft and powdery non-tacky feeling on dry down. The powder is also used as a flavour enhancer and to create incense sticks to be burned in rituals and religious practices.

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Throughout centuries, different cultures have used sandalwood chips for various therapeutic and religious purposes. These natural sandalwood chips are created from pure Indian sandalwood heartwood and can be created according to specific size requirements.

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Our wild-harvested Australian sandalwood oil is Australian Certified Organic and COSMOS Certified, meaning it is free of human-made fertilisers, pesticides, growth regulators and GMOs and meets exacting national and international standards.

SA N DA LWO OD P OWD E R, A WAT ER L E SS CO MPAN IO N Look on the back of a skincare label, and the first ingredient is likely to be 'aqua'. Water makes up an estimated 80% to 95% of skincare products due to its cost-effectiveness and the way it facilitates smooth application, hydration and dissolving water-soluble actives. But with the United Nations predicting that by 2025, 1.8 billion people will be living in countries with water scarcity and two-thirds will be water-stressed, there is a gaining movement toward ‘waterless beauty’. Enter powdered products. These products have no water, but they also have no preservatives, emulsifiers or stabilisers, which reduces waste. The contents are also smaller, minimising packaging and, without liquid to contend with, allows for more environmentally and carbon friendly packaging options.

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In the Quintis labs, our researchers are developing Indian sandalwood powder for use in cosmetics, an ultra-fine form of heartwood ideal for powdered products. “We’re really excited about this product,” says Andrew Brown, Head of Research and Development. “It caters to the consumer’s desire for water-free products, and it is functional. It adds a nice velvety texture to a formulation, and preliminary research results indicate it can also reduce the appearance of fine lines and wrinkles and reduce sheen.”

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United Nations SU STAI N ABLE D E V E LOPME N T GOALS

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United Nations Sustainable Development Goals The United Nations Sustainable Development Goals (UN SDGs) are the prevailing accepted standard in defining and interpreting social impact or sustainability. By aligning our sustainability approach with the UN SDGs3, we join a targeted effort of organisations across the globe. It also means we can communicate our approach clearly and give our global stakeholders a tangible touchstone for comparison. Our key focus areas naturally align to 10 of the 17 UNSDGs which we feel are directly applicable to our sector and give us the ability to create the most positive impact. 3

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For full details on the UN SDGs see sdgs.un.org/goals

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Our Hands-On Approach to S USTAI N ABILITY

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Our Hands-On Approach to Sustainability Behind each stage of our production process is a Quintis employee who has nurtured, protected, or crafted an element of our sandalwood by hand. We define sustainability as: Meeting the needs of the present without compromising the ability of all future generations to meet their own needs.

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Community This focus area covers the elements of our operations that touch the communities we call home – from the ways we engage with our local communities generally to dedicated employment, education, and wellness initiatives. Together, these elements define our social impact.

Carbon Despite our plantations absorbing an estimated 195,000 tonnes of carbon a year, there is still more we can do to reduce the amount of carbon we produce. This focus area consolidates energy use, greenhouse emissions and climate change more broadly.

Sustainable Production Here, we refer to our operations’ core tangible elements. On the ground, this refers to our chemical use, waste management and water use. It also extends to our market development and sales. Putting our attention to these collective elements helps us secure the sustainable growth of our operations and our economy.

Our Sustainability Focus Areas We have identified three key focus areas through a deep dive into our operations and honest, meaningful discussions with stakeholders across our business. We designed them to stand on their own and work together to create our overarching sustainability vision. Sustainability Report 2021

These focus areas have driven us to develop six goals which align to these pillars and the UN SDG’s. Housed within these goals are specific initiatives that will allow us to successfully achieve our goals through purposeful and sustainable actions. 25


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GOA L 1

Reduce our Impact on the Environment

Our climate is changing, and faster than we think. Carbon is one of the biggest culprits, and whilst necessary for life, the excess emissions of carbon gases into the atmosphere is heating the planet. The world is already 1°C hotter than it was between 1850 and 1900 (the pre-industrial era). If we don’t limit warming soon, the Intergovernmental Panel on Climate Change (IPCC), predicts dire consequences, including increased flood risks, extreme heatwaves and a rising sea level affecting billions. Sustainability Report 2021

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Our Commitments Reduce energy consumption at our processing plants by at least 40% per kilo of product produced for the life of the plan.

Use integrated pest management and silviculture systems which aim to reduce the requirement of chemical pesticides. Increase the share of treatment with beneficials, instead of traditional systems, by 20% on the prior year, by December 2022.

Finalise the commercial feasibility assessment of our ‘Biomass Pyrolysis’ project. Subject to the results of the assessment, we aim to turn at least 50% of biomass material into biochar (or a related product) by December 2026.

Limit domestic and international air travel wherever possible but when travel is required, we will ensure we support airlines that offer carbon neutral options.

Assess and measure baseline water consumption across all operational sites to develop a water optimisation strategy by 2023.

Controlled burning – we are exploring the use of traditional Aboriginal fire management which involves the lighting of ‘cool’ fires. These fires burn slowly reducing fuel loads4 and loss of ecological and biodiversity values. We aim to conclude our review by June 2022 with a report detailing action plans moving forward. Work with The Australian Packaging Covenant Organisation (APCO) to review our packaging use and develop a plan that will help us meet recycling targets by December 2022.

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Kimberley Land Council, www.klc.org.au

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“Carbon is one of the fundamental components of every organic material on earth. Carbon is all around us, it is in our physical bodies, in our soil and in the trees we care for so it’s something that is very important not just to Quintis, but to the environment and the global community. By better understanding our carbon footprint and by furthering our research, we will be able to create a more positive future for our environment, our people and the world”. – Precila Gonzales, Regional Research Forester

BIO CH A R FO R C L I M AT E CH ANG E Amid the forests of our Kununurra and Kingston Rest plantations lie 63 plots where we are trialling what could be a climate game-changer: biochar. This is a carbon-rich material created by slowly ‘baking’ our host trees and waste biomass in a pyrolysis kiln. According to recent studies, biochar could curb climate change, cutting down greenhouse emissions and increasing the carbon cycle’s latency by hundreds, if not thousands, of years. “It greatly reduces our carbon footprint,” says Regional Research Forester, Dr Precila Gonzales, in charge of the initiative. Once created, biochar is inserted into the soil effectively removing carbon dioxide that could have been emitted into the atmosphere and storing it underground where it does not contribute to global warming. One of the world’s top experts on biochar has calculated that if it was added to 10% of global cropland, 29 billion tonnes of CO2 would be sequestered5. “It’s a sort of cycle. We don’t waste the carbon – it goes back into our ecosystem,” explains Dr Gonzales. “It will also benefit our plantations by enhancing the soil structure and raising productivity.”

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Yale Environment 360, www.e360.yale.edu

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Reducing our carbon footprint is a crucial area of importance for us. Equally as important is preserving natural resources such as energy and water, both essential for healthy tree growth. There is a delicate balance involved in ensuring our trees receive the nutrients they need to thrive whilst actively trying to reduce our energy and water consumption. As for any business working with natural products, this is a challenge – yet one we are committed to overcoming through innovative solutions that strike the right balance.

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PEST MANAGEMENT T HROU GH ‘BENEFI C I ALS’ When it comes to protecting our trees from pest damage, wherever possible chemical intervention is a last resort. Quintis practises Forest Integrated Pest Management (Forest IPM) which uses a combination of cultural, biological and chemical technologies to reduce pest damage. Our first line of defence is usually of the biological kind, which includes insects. Simon Ong, Entomologist explains: “There are a lot of ‘beneficial’ insects. We have started to use biological controls, meaning we introduce other insects into our plantations to try and rectify pest issues in a natural way. We limit the amount of chemical intervention we have in the field, particularly when we identify a range of beneficial species. We don’t want to throw the plantation into chaos by trying to remove pests, but also removing our beneficial insects in the process”.

Simon spends most of his time in the field, monitoring insect movements and patterns to ensure the appropriate controls are implemented. “We have to be continually vigilant” he says. Through their work, Simon and his team have documented many unknown insect species, which are now included in the CSIRO’s (Commonwealth Scientific and Industrial Research Organisation) Australian National Insect Collection, an internationally recognised research collection that houses over 12 million specimens. Specimens have also been lodged with the Western Australian Department of Primary Industries and Regional Development, the Australian Museum and the Western Australian Museum where Simon is an Honorary Research Associate.

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PAT E N T E D T ECH N O LO GY BRE AK I N G NE W G RO UND A breakthrough in distillation technology will reduce energy consumption by as much as 75% and turn traditional steam distillation methods on its head. Quintis' Head of Production, Johan Nortier, was determined to find a more energy efficient way of distilling Sandalwood oil and has spent the past seven years researching new techniques. Inspiration was eventually found in an unlikely place: a continuous in-feed and out-feed system,

N O WAST E As part of the production process, it is normal for heartwood shavings and chips to be discarded. We take painstaking measures to ensure no wastage, carefully collecting these to put back into the manufacturing process with approximately 6% of processed heartwood recovered during production.

commonly used in papermaking. In September 2021, Quintis’ patented continuous steam distillation technology was introduced. Although simple in principle, the system required extensive testing and remodelling to ensure the continued high quality of our oils. “We tested thousands of samples to ensure that, chemically, and odour-wise, it’s the same product,” says Johan. “We’re really happy with the results. We’re able to maintain product quality while reducing our energy consumption – it’s a powerful combination.”

RE DU C I NG LANDFI LL Quintis is a member of The Australian Packaging Covenant Organisation (APCO), a not-for-profit organisation supported by Australian industry and government to deliver a sustainable approach to packaging. We are currently working with APCO to develop a plan which will help us address our own packaging use to meet APCO's 2025 targets: • 100% reusable, recyclable or compostable packaging • 70% of plastic packaging being recycled or composted • 50% of average recycled content included in packaging • The phase out of problematic and unnecessary single-use plastics packaging

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GOA L 2 :

Improve Wellbeing

“Our responsibilities extend far beyond our operations. It means being sympathetic to the needs of our community and the ways in which we interact with society. It’s how we balance doing the ‘right’ thing for our society, and how we positively influence and contribute to the people and communities around us. We want to balance operational excellence with growing and developing our people, the communities we live in and the future generations to come”. – Troy Sawyer, Head Forester If change starts at home, our commitment to a healthier, happier community begins with our employees. To better care for our group of passionate workers, we are expanding our Quintis employee wellness program, offering initiatives and incentives to prioritise their safety, wellbeing and health. But perhaps the most impactful way to effect meaningful, positive change stems from sandalwood itself. By investing in unearthing new benefits of sandalwood, we are exploring a natural alternative to support mental health and wellness, whilst developing a new skincare range to deliver holistic wellness benefits to Australian and global consumers. Sustainability Report 2021

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Our Commitments Expand our employee wellbeing program, which currently includes wellness reimbursements for employees up to AUD$500 per year and access to mental health services. We will extend this to include paid employee volunteer days, the provision of sandalwood wellness kits and the introduction of workplace wellbeing initiatives such as meditation, yoga and fitness. Employees to participate in the development of new corporate values by 2021, providing them with ownership. Values to be published and integrated within the business by June 2022.

Invest in research and studies which assist in improving the wellbeing of our wider community throughout the duration of this plan.

The development of a new skincare range containing Sandalwood oil, designed to provide holistic benefits. The range is expected to be released in October 2022.

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A plethora of research has confirmed the healing power of Indian sandalwood, but we believe it’s just the beginning. At Quintis, we have committed to a rigorous research plan, investing heavily in studies related to modern plights, such as the strain on mental health and wellness throughout the COVID-19 pandemic. Research on sandalwood’s mood-enhancing benefits is well underway, with studies in this area expected to be completed in 2022.

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G OAL 2

HE A LT H I ER , H AP P IE R E MP LOYEES Wellbeing is a state made up of countless choices such as whether you walk or drive to work, buy a handbag or a gym membership, or commit to therapy or one more drink. Our CEO Richard Henfrey was inspired to implement a wellness program allocating a budget of AUD$500 per person per year for permanent employees to offset personal health and wellbeing expenses – and make those choices for wellbeing easier to make. Here’s how some of us used the program.

Electric Bike “I had tried getting to work with a traditional bike but it was too far and difficult, so I purchased an electric bike for commuting. Now I ride to work around two or three times a week. It helps me get fit and reduces congestion on the road, too. This initiative came into place two weeks after I joined the company – it really reinforced that the place cares about your health and wellbeing, and they’re moving in the right direction.” – Mark Evans, Management Accountant, Perth

Squash Equipment “Living in a regional area, our community groups are really valuable to us. I joined the local Kununurra Squash Club but wasn’t able to commit properly to the game as I didn’t have my own racquet – I was using my husband’s old racquet to get by. It was fortunate that Quintis gave me the opportunity to invest in the sport as

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I have found I thoroughly enjoy it and have quite a natural flair for it. Having my own equipment means my game and confidence have improved immensely and I am so grateful to have had the opportunity to get the equipment with Quintis’ support!” – Julie Moore, Processing Officer, Kununurra

Fishing Equipment “Wellbeing and investing in your health goes beyond typical fitness equipment. Sometimes it means getting outside and finding something you can do with your family. I bought a fishing rod and holder which, as a family, we have used as an opportunity to relax, take time-out together and explore the rivers and landscape around the territory which we all enjoy doing.” – Vikki Gardner, Office Manager, Katherine

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GOA L 3:

Educate the Leaders of Tomorrow

The future lies in the hands – and the minds – of our youth. At Quintis, we understand we have a responsibility to educate and nurture the rising stars of tomorrow, encouraging innovation and diversity of thought to achieve better outcomes for our people and the planet. We see our most effective opportunities for impact in providing support to disadvantaged youth and minority groups whilst creating pathways for careers in Science, Technology, Engineering and Mathematics (STEM) – inspiring young thinkers to innovate a better tomorrow. Sustainability Report 2021

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Our Commitments The Forest Industry Association of the Northern Territory is the peak industry body instrumental in fostering education, career pathways and job creation in the forestry industry. As a founding member Quintis will actively support FIANT’s initiatives and will publish details of this support by January 2023. Develop and fund a minimum of two STEM related scholarships at tertiary institutions by July 2026. Support regional apprenticeships and traineeships via education pathway programs by collaborating with career pathway organisations annually from January 2023.

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Champion Equal Opportunity for All Providing equal opportunities for everyone, regardless of gender, ethnicity or age, leads to an inclusive work environment enriched by different perspectives. Research shows that creating a more diverse workforce isn't just 'the right thing to do' – it also translates to more value and higher profits. Gender equality has been at the top of our agenda for some time and continues to be a key area of focus. An analysis of Fortune 500 companies found that businesses with the most representation of women in management positions delivered a total return to shareholders 34% higher than for companies with the least6. UN Women, www.unwomen.org

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Our Commitments We will create a Reflect Reconciliation Action Plan (RAP) in conjunction with Reconciliation Australia which will document our vision for improving relationships with Indigenous Australians and Torres Strait Islanders, and provide a roadmap for how we intend to do so by December 2022. Work has already begun by mapping stakeholders in our regional operations. We have worked with Traditional Owners to identify groups and communities, as well as identifying Native Title and culturally sensitive lands.

Quintis’ Board consists of five directors. Our aim is to appoint at least one female Board member by December 2022 and aim to have at least 40% female representation by December 2024.

Design and implement an external mentoring program for female employees by 2024 through strategic partnerships.

One of our Executive Committee members has been appointed to the Perth International Women’s Day Committee, supporting UN Women Australia. For the next two years we will continue to support this important initiative which celebrates the achievements of women whilst also calling out the injustices.

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GOA L 4 Indigenous engagement is another area close to home, with over 430,000 Indigenous Australians estimated to live in the states and territories in which Quintis operates. There is a vast inequality between Indigenous and non-Indigenous Australians, including shorter life expectancy, higher rates of infant mortality, poorer health and lower levels of education and employment7. This outlook is unacceptable, and we are committed to taking the first step on our path to more equality, publicly documenting our intentions and working alongside Reconciliation Australia.

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In an effort to support the employment of Indigenous Australians at our processing centre in Kununurra, we have partnered with an employment agency that is focused on the work placement of Indigenous staff. Through the partnership, support is provided to staff in the form of training, assistance with transport from remote living locations and flexibility when cultural leave is required. Quintis is in the process of expanding this program to other locations within Australia.

We are proud of the fact women represent 42% of our total workforce, and in some locations, this is as high as 59%. Our long term goal is to encourage young girls to consider careers in forestry and environmental science and eventually increase our total representation of women to 50%.

Kimberley Land Council, www.klc.org.au

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Demonstrate our Commitment to Governance Governance is crucial – it provides a framework for effectively managing an organisation, helps good decision making and ensures everyone within an organisation understands their responsibilities and expectations. A strong, transparent corporate governance framework reassures our stakeholders and communities of our high standards and ethical values, and is vital to Quintis enduring as a responsible, sustainable and accountable corporation. Sustainability Report 2021

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Our Commitments We commit to engaging in forest management practices that are consistent with the highest industry standard including the principles of the Forest Stewardship Council® (FSC®) and the criteria of Responsible Wood (AS4708).

We will create a ‘Code of Conduct’ for partners we work with to ensure the highest standards of ethics and governance. This includes implementing a risk assessment process to assess our partners’ commitments to international labour rights before agreeing to work with them by December 2022. We hold over 20 global and local certifications. We will continue to maintain these annually and extend ourselves to obtain new ones where they add value to our business and provide stakeholders with added assurances. These will be published on our website.

We do not in any way, condone, nor partake in, animal testing. We will publish our ‘No Animal Testing’ policy for release by 2022. Our existing Mt Romance and Quintis skincare products are not tested on animals, and the new range will not be tested on animals either.

We will provide clients with documentation verifying product origin and authenticity by July 2022.

We fully support Australia’s Modern Slavery Act 2018 and will develop and share our statement in support of this by early 2022.

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Empower Local Communities to be Sustainable We have strong roots in the regions, with the vast majority of Quintis’ plantations and processing centres located in rural and regional areas of Australia. As well as providing safe and secure jobs for locals, we are committed to investing in community-led initiatives and partnerships – strengthening our regions by helping build resilient, sustainable communities and economies. Sustainability Report 2021

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Our Commitments Maintain a minimum of 80% local employment across permanent roles in regional areas, ensuring local communities are economically self-sufficient. Continue to support regional tourism efforts annually and provide suitable opportunities to engage with tourists across operational sites, boosting local economies. Donate unused hardware (such as computers or electronics, machinery and tools) annually to not-forprofit organisations to ensure a sustainable pattern of use and to assist in community growth. Establish donation program by June 2022. Engage in local community initiatives that support vulnerable or disadvantaged people. An example of this is the Kununurra Community Kitchen which we currently support, and which provides community members with meals, some of which are home delivered.

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T HE SAN DA LWO O D SH O P The Sandalwood Shop, part of the Quintis group, has become a local tourist icon in the regional towns of Albany and Kununurra in Western Australia. It is also a retail hub for personal care and lifestyle products containing Australian and Indian sandalwood oil and a regular participant in local tourism activities such as the Taste of the Great Southern, Newdegate Field Day and the Albany Wellness Expo. The Sandalwood Shop hosts over 30 local tour groups each year – bolstering local economies and supporting regional tourism efforts.

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Glossary

S P EC I ES D E F I N ITIO N S Alpha santalol

Carbon dioxide (CO2)

Indian sandalwood

Reconciliation Action Plan (RAP)

A naturally occurring sesquiterpene that is a component of sandalwood oil and thought to have therapeutic benefits. Indian sandalwood has the highest concentration of alpha santalol at between 41-55%.

Carbon dioxide is a colourless gas which occurs naturally in the earth’s atmosphere. Excessive CO2 in the atmosphere creates a cover that acts like a blanket over the earth, trapping heat and warming the planet and the oceans.

A documented plan that provides organisations with a framework to support the reconciliation program. Reconciliation is about strengthening relationships between Aboriginal and Torres-Strait Islander peoples and non-Indigenous peoples.

Australian sandalwood

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

A sandalwood species that belongs to the genus Santalum, species name Santalum album. Indian sandalwood is a threatened species native to India and is considered the most premium of all sandalwood species due to its woody, creamy olfactory profile and high proportion of therapeutic alpha and beta santalols. Indian sandalwood is used in fragrance, aromatherapy, cosmetics, traditional medicines, incense, handicrafts and as food.

A sandalwood species that belongs to the genus Santalum, species name Santalum spicatum or Fusanus spicatus. Australian sandalwood is native to Western Australia and most commonly used in fragrance, incense and aromatherapy, possessing a woody, earthy aroma.

Ayurveda A system of traditional medicine derived from India and focused on holistic healing that balances body, mind, spirit and social wellbeing. Indian sandalwood is popular in Ayurvedic medicine with pastes and oils used to treat the common cold, as beauty enhancers and to calm the mind.

Beta santalol A naturally occurring sesquiterpene that is found in sandalwood oil and said to be the major contributor to sandalwood’s soft woody, creamy scent. Indian sandalwood has the highest concentration of beta santalol at between 16- 24%.

Biochar A charcoal-like substance made by burning plant and animal material from agricultural and forestry waste (also called biomass). The biomass is burned in a container without oxygen releasing little to no carbon dioxide, and turned into biochar which is a stable form of carbon that can’t easily escape into the atmosphere. Sustainability Report 2021

An Australian Government agency responsible for scientific research. The CSIRO works with industry, government and research bodies to turn science into solutions to address challenges such as food security and quality, clean energy and resources, health and wellbeing, resilient and valuable environments and innovative industries.

COSMOS The COSMOS-standard signature is a guarantee for organic and natural cosmetics that consumers can rely on. Quintis’ Indian sandalwood is COSMOS Approved (denoting a completely natural ingredient) and our Australian sandalwood is COSMOS Certified (indicating organic).

Fertiliser Mineral or organic substances, most commonly Nitrogen (N) , Phosphate (P2O5) , and Potash (K20), which are applied to soil for the purpose of enhancing plant growth.

Forest Products Commission (FPC) A state government entity responsible for the sustainable management and development of Western Australia’s forest products industry using plantation, sandalwood and native forest products on land owned, or leased, by the state.

International Union for Conservation of Nature (IUCN) A global authority on the status of the natural world and the measures needed to safeguard it. The IUCN has created The Red List of Threatened Species which evaluates the extinction risk of thousands of plant and animal species. Wild Indian sandalwood is listed as ‘vulnerable’.

IOFI-IFRA Sustainability Charter A collective effort to raise the bar for sustainability in the fragrance and flavour industries, represented by the International Fragrance Association (IFRA) and the International Organization of the Flavor Industry (IOFI).

Modern Slavery Act 2018

Steam distillation The most popular method to extract essential oils from plant and wood material, steam distillation is carried out by passing pressurised steam through the plant/wood material forcing pockets of aromatic compounds to escape and evaporate into the steam. The steam condenses into a liquid consisting of essential oil and water. The oil floats to the top and is separated from the water.

Sustainable Development Goals (SDGs) 17 goals developed by the United Nations providing a blueprint to achieve a better and more sustainable future for all.

UN Women Australia UN Women is the United Nations entity responsible for promoting gender equality and women’s empowerment. UN Women Australia is a registered charity which exists to raise funds for, and awareness of, UN Women’s work across the Pacific region and around the world.

Legislation requiring Australian entities and foreign entities carrying on business in Australia to report annually on the risks of modern slavery in their operations and supply chains and the actions taken to address those risks.

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Today’s best. Tomorrow’s better. Level 1, 87 Colin St, West Perth WA Australia 6005 General enquiries: +61 8 6458 4700 Email: quintis@quintis.com.au www.quintis.com.au Sustainability Report 2021

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