1. Introduction & Purpose

This Environmental & Sustainability Policy (the "Policy") outlines Nexly Corporation's ("Nexly" or the "Company") commitment to environmental sustainability and responsible business practices. Located at 701 South Street Suite 100, Mountain Home, AR 72653, Nexly recognizes its responsibility to minimize its environmental impact and contribute to a more sustainable future. This Policy is designed to:

• Minimize Environmental Impact: Reduce our environmental footprint through responsible use of resources, waste reduction, and pollution prevention.
• Address Climate Change: Take action to mitigate climate change by reducing greenhouse gas (GHG) emissions and supporting the transition to a low-carbon economy.
• Promote Sustainable Practices: Integrate sustainable practices into all aspects of our operations, including product design, manufacturing, supply chain management, and office operations.
• Comply with Environmental Laws and Regulations: Comply with all applicable environmental laws, regulations, and industry standards.
• Engage Stakeholders: Engage with our stakeholders, including employees, customers, suppliers, and the community, to promote environmental sustainability.
• Drive Innovation: Foster innovation in sustainable products and services.
• Promote Transparency and Accountability: Be transparent about our environmental performance and accountable for achieving our sustainability goals.

This Policy applies to all Nexly operations globally, including all employees, contractors, vendors, and other individuals or 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 Energy Efficiency Policy, the Waste Management Policy, and the Environmental, Social, and Governance (ESG) Policy.

2. Environmental Principles

Nexly Corporation is guided by the following environmental principles:

• 2.1. Environmental Stewardship: We are committed to protecting the environment and minimizing our environmental impact. We will strive to use resources efficiently, reduce waste, and prevent pollution.
• 2.2. Climate Action: We are committed to addressing climate change. We will reduce our GHG emissions through energy efficiency measures, the use of renewable energy, and other means.
• 2.3. Circular Economy: We will promote the principles of the circular economy by designing products and services that are durable, repairable, reusable, and recyclable.
• 2.4. Sustainable Supply Chain: We will work with our suppliers to promote sustainable practices throughout our supply chain. Follow the Ethical Sourcing Policy, [Link to Ethical Sourcing Policy].
• 2.5. Continuous Improvement: We will continuously seek opportunities to improve our environmental performance and to enhance our sustainability efforts.

3. Environmental Goals & Targets

Nexly Corporation will establish and pursue measurable environmental goals and targets. These goals and targets will be reviewed and updated regularly. Current goals and targets include:

• 3.1. Greenhouse Gas (GHG) Emissions Reduction:
  • Goal: Reduce Scope 1 and Scope 2 GHG emissions by [Specify Percentage, e.g., 40%] by [Specify Target Year, e.g., 2035] compared to a [Specify Base Year, e.g., 2023] baseline.
  • Initiatives:
    • Invest in renewable energy.
    • Improve energy efficiency in our facilities.
    • Reduce business travel emissions.
    • Encourage remote work.
    • Consider carbon offsets.
• 3.2. Energy Efficiency:
  • Goal: Reduce energy consumption per unit of revenue by [Specify Percentage, e.g., 25%] by [Specify Target Year, e.g., 2030].
  • Initiatives:
    • Use energy-efficient lighting (e.g., LED).
    • Purchase energy-efficient equipment.
    • Optimize building energy management systems.
• 3.3. Water Conservation:
  • Goal: Reduce water consumption per employee by [Specify Percentage, e.g., 15%] by [Specify Target Year, e.g., 2028].
  • Initiatives:
    • Install water-efficient fixtures and appliances.
    • Implement water-saving landscaping practices.
    • Monitor water consumption.
• 3.4. Waste Reduction and Recycling:
  • Goal: Divert [Specify Percentage, e.g., 80%] of waste from landfills by [Specify Target Year, e.g., 2030].
  • Initiatives:
    • Implement comprehensive recycling programs.
    • Reduce paper consumption.
    • Promote the use of reusable materials.
• 3.5. Sustainable Sourcing:
  • Goal: Source [Specify Percentage, e.g., 90%] of materials and supplies from sustainable suppliers by [Specify Target Year, e.g., 2030].
  • Initiatives:
    • Incorporate environmental criteria into procurement decisions.
    • Prioritize suppliers with strong environmental performance.
    • Source environmentally friendly products.

4. Environmental Management Practices

Nexly Corporation will implement a range of environmental management practices to achieve its environmental goals.

• 4.1. Energy Management:
  • Energy Audits: Conducting regular energy audits to identify opportunities for energy efficiency.
  • Energy-Efficient Equipment: Purchasing and utilizing energy-efficient equipment, appliances, and lighting.
  • Building Management Systems: Optimizing building energy management systems to reduce energy consumption.
  • Renewable Energy: Exploring opportunities to use renewable energy sources, such as solar power, at Company facilities.
  • Employee Awareness: Educating employees about energy conservation practices.
• 4.2. Water Management:
  • Water-Efficient Fixtures: Installing water-efficient fixtures and appliances.
  • Water Conservation Practices: Implementing water conservation practices.
  • Leak Detection and Repair: Regularly inspecting for and repairing leaks.
  • Landscaping: Utilizing water-wise landscaping techniques.
• 4.3. Waste Management:
  • Waste Reduction: Implementing waste reduction strategies, such as reducing paper usage and promoting the use of reusable items.
  • Recycling Programs: Implementing comprehensive recycling programs for paper, plastics, glass, and other recyclable materials.
  • Waste Diversion: Aiming to divert waste from landfills through recycling, reuse, and composting.
  • Proper Waste Disposal: Disposing of hazardous waste and other waste materials responsibly, in compliance with all applicable regulations.
• 4.4. Sustainable Sourcing & Supply Chain:
  • Vendor Guidelines: Requiring vendors and suppliers to comply with our ethical sourcing guidelines and this Policy. Follow the Ethical Sourcing Policy [Link to Ethical Sourcing Policy].
  • Assessment: Assessing vendors on environmental and sustainability efforts.
  • Sustainable Materials: Considering the environmental impact of products and their materials.
  • Resource Efficiency: Seek ways to enhance efficiencies throughout the Company’s supply chain.
• 4.5. Transportation and Travel:
  • Business Travel Reduction: Promoting virtual meetings and reducing unnecessary business travel.
  • Fuel-Efficient Vehicles: Using fuel-efficient vehicles for company-related travel.
  • Employee Commuting: Encouraging employees to use public transportation, carpool, or walk or bike to work.

5. Roles & Responsibilities

Effective environmental management requires a commitment from all levels of the organization.

• 5.1. Board of Directors:
  • Provides oversight of the Company's environmental performance.
  • Approves this Policy and reviews its effectiveness.
  • Monitors the Company's environmental goals and objectives.
  • Ensures that environmental considerations are integrated into the Company's strategic plans.
• 5.2. Environmental Sustainability Committee (ESC) (or equivalent): (If applicable, or alternatively, a designated senior management group)
  • Develops and implements the Company's environmental strategy and action plans.
  • Monitors and reports on the Company's environmental performance.
  • Develops and implements environmental programs and initiatives.
  • Coordinates with various departments to integrate environmental considerations into all aspects of the business.
  • Conducts environmental audits and inspections.
  • Reviews and approves environmental mitigation plans.
  • Ensures that this Policy is regularly reviewed and updated.
  • The ESC will be comprised of [Specify Members and their Titles, e.g., the CFO, Head of Operations, Facilities Manager, a representative from Marketing, and a representative from a relevant business unit]. The Chair of the ESC will be [Specify Title, e.g., the CFO].
• 5.3. Chief Executive Officer (CEO):
  • Provides overall leadership and direction for the Company's environmental sustainability efforts.
  • Ensures that this Policy is integrated into all business activities.
  • Supports the Environmental Sustainability Committee (or equivalent) in its efforts.
  • Communicates the importance of environmental sustainability throughout the organization.
• 5.4. Chief Financial Officer (CFO):
  • Oversees the financial aspects of the environmental sustainability program.
  • Works with the Environmental Sustainability Committee to develop and monitor environmental performance metrics and targets.
  • Ensures that environmental costs and benefits are accurately reflected in financial reporting.
• 5.5. Department Heads & Business Unit Managers:
  • Responsible for implementing this Policy within their respective departments or business units.
  • Identify and manage environmental risks and opportunities within their areas of responsibility.
  • Implement environmental programs and initiatives.
  • Report on environmental performance to the Environmental Sustainability Committee (or equivalent) and their management.
  • Foster a culture of environmental responsibility within their departments.
• 5.6. Facilities Management:
  • Manages the Company's facilities and operations to minimize environmental impact.
  • Implements energy-efficiency and water-conservation measures.
  • Manages waste reduction and recycling programs.
  • Monitors and reports on environmental performance.
• 5.7. Procurement Department:
  • Incorporates environmental criteria into procurement decisions.
  • Gives preference to suppliers with strong environmental performance.
  • Procures environmentally friendly products and services.
• 5.8. Marketing & Communications:
  • Communicates the Company's environmental commitment and performance to stakeholders.
  • Promotes sustainable practices internally and externally.
• 5.9. All Employees:
  • Responsible for understanding and adhering to this Environmental & Sustainability Policy.
  • Identifying and reporting potential environmental concerns.
  • Participating in environmental programs and initiatives.
  • Conserving resources and minimizing waste in their daily activities.

6. Monitoring and Reporting

Nexly Corporation will regularly monitor and measure its environmental performance.

• 6.1. Performance Metrics: Track key environmental performance indicators (KPIs), including:
  • Energy consumption.
  • Greenhouse gas (GHG) emissions.
  • Water consumption.
  • Waste generation and recycling rates.
  • Use of sustainable materials.
  • Supplier Sustainability Performance.
• 6.2. Data Collection and Analysis: Collecting and analyzing data on environmental performance.
• 6.3. Reporting: Regularly report on the Company's environmental performance to the Environmental Sustainability Committee (or equivalent), senior management, and, where appropriate, external stakeholders.
  • External Standards: Report using global standards.
• 6.4. Third Party Verification (Optional):
  • Independent Review: The Company may, at its discretion, seek independent verification of its environmental performance data.

7. Policy Compliance and Enforcement

Compliance with this Environmental & Sustainability Policy is mandatory for all Nexly employees, contractors, and other individuals acting on behalf of the Company.

• 7.1. Employee Obligations: All employees and others are required to act in a responsible and sustainable manner.
• 7.2. Corrective Actions: Steps to correct any instances of non-compliance.
• 7.3. Non-Compliance Consequences: Failing to adhere to this policy may result in disciplinary action, up to and including termination of employment or contract.

8. Policy Review & Amendments

This Environmental & Sustainability Policy will be reviewed and updated regularly to ensure its continued relevance, effectiveness, and alignment with best practices and applicable laws and regulations.

• Review Frequency: This Policy will be reviewed at least [Specify Frequency, e.g., annually] or more frequently as needed.
• Review Process: The review process will involve:
  • Input from Stakeholders: Seeking input from relevant stakeholders, including the Environmental Sustainability Committee (or equivalent), management, employees, and external experts.
  • Performance Evaluation: Assessing the Company's environmental performance against its goals and objectives.
  • Regulatory Review: Ensuring the Policy is in compliance with all environmental laws and regulations.
  • Industry best practice review: Examine the current best practices.
• 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 relevant employees through [Specify Communication Channels, e.g., company-wide email, intranet posting, training sessions].
• Policy Ownership: The Environmental Sustainability Committee (or equivalent), with support from Legal Counsel and other relevant departments, is responsible for maintaining and updating this Policy.

**Acknowledgement:** By working for Nexly Corporation, all employees and other involved parties are deemed to acknowledge that they have read, understood, and agree to abide by the terms and conditions outlined in this Environmental & Sustainability Policy.