1. Introduction & Purpose

This Corporate Social Responsibility (CSR) Policy (the "Policy") outlines Nexly Corporation's ("Nexly" or the "Company") commitment to conducting its business in a socially responsible and ethical manner, contributing to the well-being of our employees, communities, and the environment. Located at 701 South Street Suite 100, Mountain Home, AR 72653, Nexly recognizes that its business activities have an impact on society and is dedicated to creating positive change through responsible corporate citizenship. This Policy is designed to:

• Define CSR: Articulate Nexly’s commitment to Corporate Social Responsibility.
• Integrate CSR into Business Strategy: Integrate CSR principles into our business strategy and decision-making processes.
• Benefit Stakeholders: Create value for our stakeholders, including employees, customers, shareholders, communities, and the environment.
• Promote Ethical Conduct: Uphold the highest ethical standards. Follow the Employee Code of Conduct [Link to Code of Conduct].
• Support Community Development: Contribute to the social and economic development of the communities in which we operate.
• Protect the Environment: Minimize our environmental impact. Follow the Environmental & Sustainability Policy [Link to Environmental Policy].
• Promote Diversity, Equity, and Inclusion (DEI): Foster a diverse, equitable, and inclusive workplace and community. See the DEI Policy [Link to DEI Policy].
• Promote Transparency and Accountability: Be transparent about our CSR performance and accountable for achieving our CSR goals.

This Policy applies to all Nexly employees, officers, directors, contractors, and other individuals and entities acting on behalf of the Company. This Policy is to be read in conjunction with other Company policies, including, but not limited to, the Ethical Sourcing Policy, the Environmental Policy, the Diversity, Equity & Inclusion (DEI) Policy, and the Code of Conduct.

2. Core Pillars of CSR

Nexly Corporation's CSR initiatives are built upon the following core pillars:

• 2.1. Ethics and Governance:
  • Ethical Business Practices: Conduct business with integrity, honesty, and transparency.
  • Compliance: Comply with all applicable laws, regulations, and industry standards.
  • Transparency: Be transparent in our operations and communications.
  • Anti-Corruption: Prohibit bribery, corruption, and other unethical practices.
• 2.2. Environmental Sustainability:
  • Environmental Stewardship: Minimize our environmental impact through responsible use of resources, waste reduction, and pollution prevention.
  • Climate Action: Reduce greenhouse gas (GHG) emissions and support the transition to a low-carbon economy.
  • Sustainable Practices: Implement sustainable practices throughout our operations.
• 2.3. Social Responsibility:
  • Employee Well-being: Support the health, safety, and well-being of our employees.
  • Fair Labor Practices: Provide fair wages, benefits, and working conditions. Follow the Ethical Sourcing Policy, [Link to Ethical Sourcing Policy].
  • Diversity, Equity, and Inclusion (DEI): Promote diversity, equity, and inclusion in our workplace and in the communities in which we operate.
  • Community Engagement: Contribute to the social and economic development of our communities through philanthropic activities, volunteerism, and other initiatives.

3. Specific Initiatives

Nexly Corporation will implement a variety of specific initiatives to support its CSR pillars. These initiatives include, but are not limited to:

• 3.1. Ethical Governance:
  • Code of Conduct: Enforce the Company's Code of Conduct, and provide training on ethical conduct.
  • Whistleblower Protection: Maintain a Whistleblower & Ethics Reporting Policy [Link to Whistleblower Policy].
  • Independent Oversight: Ensure independent oversight of the Company's ethics and compliance program.
• 3.2. Environmental Sustainability:
  • Reduce Carbon Footprint: Reduce GHG emissions.
  • Energy Efficiency: Improve energy efficiency in our facilities.
  • Water Conservation: Conserve water.
  • Waste Management: Reduce waste.
  • Sustainable Sourcing: Source from suppliers with ethical and environmental standards.
• 3.3. Social Initiatives:
  • Employee Well-being Programs: Provide wellness programs.
  • Philanthropy: Support local community organizations and initiatives through financial contributions, in-kind donations, and volunteerism.
  • Community Engagement: Encourage employee volunteerism.
  • Diversity and Inclusion Programs: Implement programs and initiatives to promote diversity, equity, and inclusion in the workplace.

4. Measuring and Reporting Performance

Nexly Corporation will regularly measure and report on its CSR performance to assess its progress towards its goals and objectives.

• 4.1. Key Performance Indicators (KPIs):
  • Environmental: Track energy consumption, GHG emissions, water usage, waste generation and recycling rates, and use of sustainable materials.
  • Social: Track employee engagement, diversity and inclusion metrics, community investment, and employee volunteer hours.
  • Governance: Track the number of ethics training programs completed, the number of reports received through the Ethics Hotline, and other relevant metrics.
• 4.2. Reporting Frequency and Content: Publish an annual CSR report.
  • Reporting: Reports should follow guidelines.
  • External Standards: Reports should be aligned with the Global Reporting Initiative (GRI) or another recognized framework.
• 4.3. External Verification (Optional): Seek independent verification of ESG information and performance as necessary.

5. Governance and Oversight

The implementation of this CSR Policy will be overseen by:

• 5.1. Board of Directors:
  • Provides oversight of the Company's CSR performance and approves this Policy.
  • Monitors the Company's progress towards its CSR goals.
• 5.2. CSR Committee (or equivalent): (If applicable, or alternatively, a designated senior management group)
  • Develops and implements the Company's CSR strategy and action plans.
  • Monitors and measures the Company's CSR performance.
  • Prepares and/or oversees the Company's CSR reporting.
  • Recommends improvements to the Company's CSR program.
  • The CSR Committee will be comprised of [Specify Members and their Titles, e.g., the CEO, CFO, Head of Sustainability, Head of HR, and representatives from various departments]. The Chair of the CSR Committee will be [Specify Title, e.g., the CEO or a designated senior leader].
• 5.3. Chief Executive Officer (CEO):
  • Provides overall leadership and direction for the Company's CSR efforts.
  • Ensures that the Company's CSR Policy is integrated into all business activities.
  • Communicates the importance of CSR throughout the organization.
• 5.4. Responsibility for Specific Areas:
  • Specific departments will be responsible for certain areas of responsibility.
  • For example: The Head of Sustainability will be responsible for the environmental sustainability initiatives. The Head of HR will be responsible for the social responsibility initiatives.

6. Policy Review & Amendments

This Corporate Social Responsibility (CSR) Policy will be reviewed and updated regularly.

• Review Frequency: This Policy will be reviewed at least [Specify Frequency, e.g., annually] or more frequently.
• Review Process: The review process will involve:
  • Input from Stakeholders: Seeking input from relevant stakeholders.
  • Performance Evaluation: Assessing the Company's CSR performance.
  • Industry Benchmarks: Reviewing industry best practices.
  • External Developments: Staying up-to-date with new developments.
• Policy Amendments and Communication: Any amendments to this Policy will be approved by [Specify Approving Authority, e.g., the Board of Directors or the Executive Leadership Team] and communicated to all Employees through [Specify Communication Channels, e.g., company-wide email, intranet posting, training sessions].
• Policy Ownership: The Legal Department, in collaboration with the CSR Committee (or equivalent), is responsible for maintaining and updating this Policy.

**Acknowledgement:** By participating in activities within the Company, all employees, contractors, and other authorized individuals are deemed to acknowledge that they have read, understood, and agree to support and abide by the terms and conditions outlined in this Corporate Social Responsibility (CSR) Policy.