20REIMAGINING
PLAY FOR FUTURE
GENERATIONS
2022 CORPORATE SOCIALRESPONSIBILITY REPORT

2

11
16

2

Introduction
About This Report

2

Letter from the Global
President & CEO

3

About Spin Master4

Spin Master Global Offices

24

About This Report

Our People
Employee Engagement

25

Learning and Development

26

Equity, Diversity and Inclusion

27

5

Fostering Inclusivity
in Our Industry

28

CSR at Spin Master6

Our Diversity Representation

29

Materiality Analysis

8

Health and Safety

30

Stakeholder Engagement

9

Governance and Ethics

10

Our Environment
Our Performance12

Our Climate Action Commitment

14

Waste

15

Our Products
Playsponsible

17

Sustainable Packaging

18

Product Safety and Quality

19

Chemicals of Concern

20

31
35

Our Communities
Future of Play

32

Spreading Joy Globally

33

Our Culture of Giving

34

Reporting andDisclosures
2022 Risks and Opportunities

36

Our CSR Priorities

39

Performance Data

40

UN Sustainable
Development Goals

43
44

This is Spin Master Corp.’s fourth Corporate Social Responsibility (CSR)
Report. Spin Master Corp. and its subsidiaries are together referred toin this report as the “Company” or “Spin Master.” The report content was
defined based on the materiality analysis that we conducted, which
includes our direct operations and third-party vendors in the case ofsocial compliance and carbon emissions. There are no substantial changes
in the scope of our reporting. This report covers calendar year 2022, fromJanuary 1, 2022, to December 31, 2022, and was released in April 2023.
We have also included some forward-looking information. Please see thedisclaimer at the back of the report for further details.
The most recent report prior to the 2022 Corporate Social Responsibility
Report was the 2021 Corporate Social Responsibility Report, which was
released in April 2022. We continue to report on an annual cycle.
This report includes all Sustainability Accounting Standards Board(SASB) indicators for Toys and Sporting Goods. We are also reporting withreference to material indicators with the Global Reporting Initiative (GRI)
Standards. Both the SASB indicators and GRI disclosures can be found in
the Performance Data and GRI Content Index at the end of the report.
We have also referenced the UN Sustainable Development Goals andprovided some responses to the Task Force on Climate-Related Financial
Disclosures Recommendations.
This report restates certain information from previous reports as it relates
to Scope 1 and Scope 2 carbon emissions data. In previous reports,
we categorized energy-related (electricity and heating) carbon emissions
from owned facilities within Scope 2 emissions. We are now categorizingthem as Scope 1 emissions in this report and will continue to do somoving forward. All previous carbon emissions reporting data has been
restated accordingly.
Spin Master retained DNV Business Assurance USA, Inc. to provide
independent verification of the carbon emission data within this report.
Their conclusion, along with their methodology, will be posted
publicly on the Company website. All other data presented inthis report is based on the best information available atthe time of publication and was not verified externally.

Responsible Sourcing

21

Family-Friendly Spaces Program

22

Task Force on Climate-Related
Financial Disclosures

Responsible Marketing andContent for Children

GRI Content Index

48

For further questions, please contact
communications@spinmaster.com

23

CSR Report Disclaimer

56* All figures are in U.S. dollars.

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESLetter from the Global President & CEO
We began our Corporate Social Responsibility (CSR) journey in 2019 with an aspiration tocontinuously improve across our four pillars: our environment, our products, our people and ourcommunities. We are proud of the progress we have made since then, particularly as it relates
to setting targets and advancing towards increased transparency and enhanced governance.
As we’ve advanced our work within this area, we’ve taken
the opportunity to refine our CSR vision to align moreclosely with our overall strategy and demonstrate thematurity to which we have progressed. Reimaging Playfor Future Generations still reflects our commitment
to continuous learning and our purpose of creating
magical play experiences for children and families. It also
represents our responsibility to uphold an inclusive culture
and empower children to grow and learn through play,while acting as responsible custodians of the world thesechildren will one day inherit.

Fostering an Inclusive Culture
Being open-minded and embracing diversity are values
we hold closely as part of our Company culture. We arecommitted to providing an inclusive workplace where
employees can learn, celebrate and support one another as
a community. Our employees are the driving force behind
our success and we wholly support their well-being.

We enhanced our employee benefits in 2022, increasing
wellness and mental health support, providing increased
vacation benefits and adding further financial support
through our first-ever employee share purchase plan.
Strong leadership is vital to the development of such aculture and, this past year we invested in our leadershipcapabilities through two development summits for Vice
Presidents and above. We intend to cascade the training
to other levels of management in 2023.
We also continued to support the next generation ofcreators from equity-seeking groups and communities(BIPOC, LGBTQIA+ or women) in North America bywelcoming the second cohort of the Future of Play
Scholarship Program. In total, we provided funding to
15 new and returning students in their pursuit of postsecondary education and are committed to supportingthem until the completion of their programs.

Our new CSR vision isn’t just about what we do but how we do it. Our
collaborative culture and talented employees will continue to drive
the integration of CSR into our products and operations, allowing us
to constantly reimagine play for future generations.

3

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTION

Empowering Children to Grow and Learn
through Play
Grounded in the belief that all children deserve theopportunity to grow, learn and explore through play,
we partner with leading children’s charities to deliver
programming to help kids tap into their own creativity
and develop new skills. From teaching children to solve
the Rubik’s Cube® to encouraging students to invent
creative solutions to everyday challenges, we’re inspiringand enabling kids to become the next generation of
inventors, artists, animators and developers.
In 2022, we expanded the global reach of our philanthropy
programs by donating more than 450,000 toys throughinitiatives such as The Toy Movement and our signature
Caring & Sharing events. Amid the conflict in Ukraine, we
also came together to provide toys and financial relief tosupport impacted and displaced children and families.
Our employees are actively engaged in our philanthropy
efforts and recorded more than 5,000 volunteer hours
this past year. As a result of this collective effort, our 2022
philanthropy efforts positively impacted 610,000 children
around the world.

Being Responsible CustodiansIntertwined with our commitment to the well-being ofchildren is a sense of responsibility to ensure that we
protect the world that they will one day inherit. For the firsttime in our history, we have completed a Climate Action
Plan for the Company. The outcome of that plan will see
us take well-planned steps and a commitment to a 70%
reduction in our Scope 1 and 2 emissions by 2030 and atarget to achieve net-zero emissions by 2050. As part ofour efforts, we’ve also established a zero-waste target forour owned and leased facilities for 2035.

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLE

This is just a starting point: new innovations and market
solutions are continually emerging to further reduce theenvironmental impact of our products and operations.
One example is the work of our product development andpackaging teams, which have been finding ways to reduce
our use of virgin plastic and incorporate sustainable design
into our toy portfolio. In 2022, we launched seven new
toys, including a 100% recycled Baby GUND® line.
Our new CSR vision isn’t just about what we do but how
we do it. Our collaborative culture and talented employees
will continue to drive the integration of CSR into our
products and operations, allowing us to constantly
reimagine play for future generations.

Max Rangel
Director, Global President & CEO

OUR COMMUNITIESREPORTING AND DISCLOSURESAbout Spin Master

2,280

Toys

Spin Master Corp. (TSX:TOY) is a leading global
children’s entertainment company, creating
exceptional play experiences through its threecreative centres: Toys, Entertainment and Digital
Games. With distribution in over 100 countries,
Spin Master is best known for award-winningbrands PAW Patrol®, Bakugan®, Kinetic Sand®, Air
Hogs®, Hatchimals®, Rubik’s Cube® and GUND®,
and is the global toy licensee for other popular
properties. Spin Master Entertainment creates andproduces compelling multiplatform content throughits in-house studio and partnerships with outside
creators, including the preschool franchise PAW
Patrol and numerous other original shows, shortform series and feature films. The Company has anestablished presence in digital games, anchoredby the Toca Boca® and Sago Mini® brands, offering
open-ended and creative game and educational
play in digital environments. Through Spin Master
Ventures, the Company makes minority investments
globally in emerging companies and start-ups. With
over 26 offices in close to 20 countries, Spin Master
employs more than 2,000 team members globally.
For more information visit spinmaster.com or follow
on Instagram, Facebook and Twitter @spinmaster.

Preschool,
Dolls & Interactive

Activities, Games& Puzzles and Plush

Wheels & Action

in revenue for 2022

Entertainment

230

Digital Games

Digital games reaching
children in 230 countries

100

customer markets
for toys and games

241M

toys and games produced
in 2022VALUES

AWARDS AND DISTINCTIONS

Reimagining where
imagination can take us.

We’ve Got Integrity
We Get Results
We InventWe Collaborate
We Partner
We are Open-Minded
We are Entrepreneurs

32 Toy of the Year (TOTY) Awards

To create never-ending fun
in an ever-growing sandbox.

full-time employees$2B

VISIONPURPOSE

Outdoor

Toca Life iPhone App of the Year 2021
Sustainalytics ESG Industry Top-Rated for 2023
Greater Toronto’s Top Employers 2023
Canada’s Best Managed Companies
Fast Company’s Best Places to Work for
Innovators 2022

190

countries that Spin Master
Entertainment properties are
distributed in

4thlargest global toy
manufacturer1

450,000
toys donated in 2022
1 Per Circana 2022 full year.

4

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESSpin Master Global Offices

26
offices

2,280
full-time employees

Full-Time Employees by Region

CanadaEuropeAsia

MexicoU.S.

Australia

813
513
333

Represents location on global map
Headquarters

524
72
25

Locations (City, Country, Multiple)
Amsterdam, Netherlands Bourne End, U.K.
Bangalore, India
Bratislava, Slovakia
Bentonville, U.S.
Calais, France

5

Spin Master 2022 Corporate Social Responsibility Report

Dongguan, China
Hai Phong City, Vietnam
Hong Kong, China (SAR)

Jiaxing, China
Los Angeles, U.S.
Mexico City, Mexico

INTRODUCTION

Milan, Italy
Minneapolis, U.S.
Munich, Germany

OUR ENVIRONMENTOUR PRODUCTS

New York, U.S.
Paris, France
Pleasanton, U.S.

OUR PEOPLE

Stockholm, Sweden
Sydney, Australia
Tokyo, JapanOUR COMMUNITIESToronto, Canada (3)Valencia, Spain
Warsaw, Poland

REPORTING AND DISCLOSURESCSR at Spin Master
CSR Vision
Reimagining Everyday Play for Future Generations
Spin Master creates magical play experiences for children and their families. We foster an inclusive culture, empowering children
to grow and learn through play while acting as responsible custodians of the world these children will one day inherit.

6

Our Environment

Our Products

We are committed to minimizing theimpact of our operations on
the planet to ensure we protect
the world for children and families
today and for generations to come.

As a leading children’s entertainment
company, we are committed to producing
safe, high-quality and responsibly
sourced products. We are striving toincorporate responsible product materials
and packaging to provide consumers
with more sustainable options.

Our People

Our Communities

Our talented team is the driving
force behind our purpose of creating
magical experiences for children
and their families. We are committed
to investing in our employees’
well-being and development andto fostering an inclusive workplace
where everyone can thrive, growand ultimately have fun.

We give children in communities aroundthe world the opportunity to grow,explore and learn through the powerof play. Through our in-kind donations,investments in educational programming,
local community engagement andemployee volunteerism, we are helping
children harness their creativity anddevelop skills to achieve things they
thought unimaginable.

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESCSR Governance

Executive CSR Governance Committee

We value the trust bestowed to us as a leader in the children’s
entertainment industry and are committed to being responsible
citizens across our CSR pillars. We have implemented an internal
governance structure to ensure sound oversight and accountability.

In 2022, Spin Master established the Executive CSR GovernanceCommittee. The Committee includes all members of the Company’s
Executive Leadership Team and oversees the management andmeasurement of articulated CSR plans and targets. It meets quarterly
to review progress against our CSR plan and also evaluates emerging
risks and opportunities within the CSR pillars.

Governance & Nominating Committee of
the Board of Directors
Since 2020, oversight of Spin Master’s CSR has been a responsibilityof the Governance & Nominating Committee of Spin Master’s Board of
Directors. The Committee is responsible for reviewing and assessing
the Company’s CSR strategy and multi-year plan-related reporting forenvironmental and social matters, including donations and community
investment and monitoring performance on an annual basis. In 2022,
climate was added to the mandate of the board in order to strengthen
oversight on environmental matters. This Committee provides updates
to the board on environmental and social issues as necessary.

CSR Committee

CSR Governance Structure
Governance & Nominating
Committee of the Board of Directors

The CSR Committee is comprised of representatives from across theCompany, including those with expertise in a number of disciplines
including Legal, Quality Assurance/Compliance, Human Resources,
Finance, Product Development and Engineering, Packaging, Facilities,
Design, Communications and Enterprise Risk Management. The
CSR Committee is led by the Vice President of Communications andCorporate Citizenship who reports into the Executive Vice President(EVP), Chief People Officer.

Executive CSR GovernanceCommittee

Committee members review the performance of the Company against
its CSR strategy and targets, make recommendations on initiatives
to be taken and oversee their delivery. Supporting this work are two
sub-committees focused on sustainability in product development
and facilities. The Committee meets multiple times throughout
the year, including in advance of each Executive CSR GovernanceCommittee meeting.

CSR Committee

Product Sustainability
Sub-Committee

Facilities Sustainability
Sub-Committee

7

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Materiality
Analysis

Customers

Employees

Families

Investors/
Rating agencies

Suppliers

Communities &NGOsGovernment/
Policymakers

Industry
associations

High-priority issues
Ethical behaviour

Materiality analyses form the basis for our CSR strategy,
by identifying which issues are the most important
to Spin Master from an environmental, social andgovernance perspective and those that are important
to stakeholders. This year, we’ve taken a more granularapproach, looking at the importance of issues tospecific stakeholder groups. We’ve updated the analysis
using desk research from international and specialist
media, bespoke consumer research, investor researchand stakeholder interviews to understand and reflect
emerging activities. We also validated this analysis with
our Executive and CSR Committee. Overall, in 2022, we
saw a sustained high interest in employee well-being
issues and climate change. We have seen interestin pandemic response wane as we start to return tonormal and we have set protocols in place.

Product safety and quality
Responsible sourcing
Sustainable packaging
Sustainable product materials
Climate change
Medium-priority issues
Responsible marketing andcontent for children
Inclusive content
Occupational health andsafetyPrivacy and cybersecurity
Employee engagement andtalent management
Waste reduction
Equity, diversity and inclusion
Employee wellness

R E L AT E D P I L L A R

I M PA C T

Corporate governance
Product takeback

Governance and Ethics

High Impact

Our Products

Medium Impact

CSR governance

Our People

Low Impact

Community investment

Our Communities
Our Environment

Lower-priority issues
Lobbying and politicalengagement
Responsible tax
Energy use
Biodiversity
Water use

8

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESStakeholder
Engagement
To continually strengthen our CSR work, we
regularly seek the perspectives of a variety of
stakeholders identified in the map below, which
provides an overview of how they are engaged
throughout the year.

Stakeholder group

How they are engaged

Key topics

Employees• Town hall meetings• Open forums• 1:1 and team meetings• Experience surveys• Training and development• Internal messaging• Green teams• Employee experience – diversity, including
employee engagement, learning anddevelopment, compensation and benefits,talent acquisition, inclusion and belonging,occupational health and safety, employee
wellness

Customers• Sales team account engagement• Industry group engagement• Commercial relationships• Product safety and quality• Responsible sourcing• Inclusive content

Families• Focus groups• Insight team consumer preference and direct
product testing• Consumer care interactions• Net promoter scores• Consumer surveys• Social media• Product safety and quality• Privacy• Inclusive content

Investoraudiences• Investor calls/presentations• Direct engagement with analysts/lenders/ratings agencies• Corporate governance• Financial performance• ESG topics – product safety and quality, product materials• Cybersecurity• Pandemic response

Civil
society• Media• Direct engagement• Memberships• Partnerships• Product safety and quality• Responsible sourcing (human rights)• Product takeback• Sustainable materials

Suppliers• Direct engagement with procurement• Site visits and audits• Supplier questionnaires• Purchasing relationships• Product safety and quality• Pandemic response

Community• Partnerships and outreach• Donations and sponsorships• Employee volunteerism• Memberships• Community donations and volunteering• Pandemic response

Government• Engagement through industry associations• Product safety and quality• Responsible marketing and content for children• Responsible sourcing• Sustainable packaging• Privacy

Key Memberships
and Partnerships
Spin Master is a member of, or partners with,several organizations including:• Advertising Standards
Canada• Academy of Canadian
Cinema• Alliance of Canadian
Cinema,Television and Radio
Artists (ACTRA)• Boys & Girls Clubs ofAmerica• Canadian Media
Producers Association• Children’s Aid
Foundation of Canada• First Responders
Children’s Foundation• Futurpreneur• ICTI Ethical Toy
Program• Let’s Talk Science9• Native Child andFamily Services ofToronto• Ogimaawabiitong(Kenora Chiefs
Advisory)• Save the Children• Screen Actors Guild–
American Federationof Television andRadio Artists (SAG–
AFTRA)• Sustainable
Packaging Coalition
and How2Recycle• TerraCycle®
• The Toy Association(and global affiliates)• World Vision Canada• Writers Guild of
CanadaSpin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIES• Pandemic response• Community support• Philanthropy• Sustainable packaging• Sustainable product materials• Waste reduction

REPORTING AND DISCLOSURESGovernance and Ethics
We conduct our business with the highest standards of ethics and are committed to sound corporate
governance. Through our governance management practices and policies we strive to ensure accountability
to our stakeholders. We regularly review our Company policies to strengthen our standards and refine ourgovernance practices to respond to changes in the governance landscape.
As part of our review, we saw an opportunity to introduce a formal
Human Rights Policy. While we have always respected internationallyrecognized human rights standards and have reflected ourcommitment throughout many of our existing policies, we felt it wasnecessary to create a policy to embed this responsibility through all
business functions and regions. Our new Human Rights Policy wasapproved by the Governance & Nominating Committee of our Boardof Directors in March 2023. Integrity is one of our core values and we
hold ourselves and each employee accountable to act in accordancewith high ethical and legal standards. To ensure we adhere to our
corporate governance practices, it is a mandatory requirement for all
employees, including temporary and contract workers, to annuallyreview, understand and attest to compliance with our Governance, Risk
and Compliance policies. Our standards and principles can be found in
our Code of Ethics and Business Conduct. More information and detailregarding our Company policies can be found here.

10

Spin Master 2022 Corporate Social Responsibility Report

Data Protection and Cybersecurity
We are committed to treating personal information with care andrespect. We take the necessary steps to protect the audiences weserve in an increasingly digital world. We have policies and practices
in place to ensure inclusive and safe digital experiences and arefocused on safeguarding the confidentiality, integrity and availabilityof sensitive data and information systems within our business.
We recognize the growing threat of cybersecurity issues aroundthe world and regularly deploy enhanced security measures acrossthe organization and engage with a third party to conduct regular
penetration tests. Additionally, we protect our data through a cyberliability insurance program.
We take stewardship of our customer and consumer information
seriously and ensure that all data is collected in accordance withapplicable regulations. We ensure compliance across our digitalproperties, including our websites, and are committed to working
with third-party organizations to validate that we are appropriately
handling secure personal information as required. More informationon our Privacy Policy can be found here.

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOUR ENVIRONMENT
We are committed to delivering the magic of play to children
and families responsibly, to preserve future generations offun. Over the past few years, we have focused attention onunderstanding our environmental footprint and evaluating
ways to minimize the impact of our operations. In 2022,
we took significant steps to solidify our plans and to set
additional targets.

60%

reduction in
Scope 1 + 2
emissions in
2022

70%

reduction in
Scope 1 + 2
emissions by
2030

Zero
Waste

by 2035 in ownedor leased facilities

IN THIS SECTION

11

Our Performance		

12

Our Climate Action Commitment

14

Waste		

15

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOur Performance
Our Climate Action Plan and the targets within are aligned with our commitment to act as a
responsible custodian of the world children will one day inherit. We continue to make progressin reducing emissions in a number of areas across our footprint.

Scope 1 and 2 Emissions
Our Scope 1 and 2 emissions decreased by 60% in 2022
in comparison to our 2019 baseline. A significant factor inthis reduction was the sale of a manufacturing facility
in Tarboro, NC, which closed in early February 2022.
We have still accounted for all the emissions from thefactory (energy and waste) until the transfer of ownershipdate. Additionally, the items that were produced at thisfactory were part of the sale and not transferred to otherproduction facilities within our supply chain.
Our employees’ return to office led to an increase inemissions within our North American operations, which
account for over 50% of our employee base. We will be
evaluating our North American portfolio over the next few
years to determine steps for greater energy efficiency
and reduced carbon emissions. This increase was offset,
in part, by a reduction in energy-related emissions in our

European offices, which benefitted from more efficient
usage of electricity. Notably, our largest European officein Stockholm, Sweden moved into a new location thatincorporates BREEAM design and operational standards,
which should continue to strengthen our environmental
performance in this region. Our offices in the Asia-Pacificregion also saw an 8% reduction in emissions which
was partially helped by the move to a newer building in
one of our locations in China. Overall, the total square
footage within Scope 1 and 2 powered by renewable orzero-emission energy sources in 2022 increased to 83%(from 82% in 2021). The establishment of LED lighting andother efficiency practices as a baseline standard for offices
also continues to support the reduction of emissionsin Scope 2.

Offsetting Our Carbon Impacts
As we pursue our emission reduction targets, we will continue to offset 100% of ourself-generated carbon, which includes all Scope 1 and 2 emissions, as well as some
Scope 3 emissions. In 2022, our funding supported two projects through Carbonfund.
Panama Tropical Reforestation Project:Cedar Bluff Wind Farm:

The offsets supported the effort to restore
nearly 25,000 acres of forest near the Pacific
Coast of Panama. The project is certified by
Climate, Community and Biodiversity Standard(CCBS) and CarbonFix Standard (CarbonFix
has since been acquired by the Gold Standard)
and was verified by SCS Global Services andRainforest Alliance.

Green-e Renewable Energy Certificates(RECs) were purchased to support electricity
generation at an onshore wind power projectin Kansas.

Our Performance
2019

2020

2021

2022

Scope 1 (Direct)

2,565.8

4,438.9

3,837.3

613.2

North America

2,064.4

3,730.0

3,215.5

116.4

501.0

708.8

234.2

496.3

Europe

0.3

0.2

585.4

0.5

2,000.2

1,016.0

1,190.4

1,222.3

North America

1,167.2

349.4

370.7

532.5

Europe

202.0

69.2

234.2

152.8

Asia-PacificScope 2 (Indirect)

Asia-PacificDirect energy use (kWh)12Spin Master 2022 Corporate Social Responsibility Report

631.0

597.4

585.4

536.9

12,304,863

10,574,063

13,367,218

7,615,568

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESScope 3 Emissions
Within Scope 3, we recorded declines in emissions within
three categories: freight, third-party warehousing andwaste. Freight-related emissions rose over the last two years
on account of global supply chain challenges that often
necessitated taking less direct routes to ensure deliveries forcustomers. With a more predictable shipping environment
and more efficient container usage (86% in 2022), wewere able to lower emissions in 2022 to slightly below ourperformance in 2019.
Emissions within our third-party party warehouse network
have consistently declined due to a continued focus onconsolidating our footprint and moving into newer, more
efficient facilities. The closure of our warehouse in Russia
also helped lower carbon emissions. Similarly, emissions fromwaste within our owned and leased facilities declined due toenhanced efficiency practices and a reduction in our overall
footprint. More details on our waste performance can befound in the Waste section.

Product
Life Cycle

The largest contributor to our Scope 3 footprint remains
third-party manufacturing within our supply chain. We
strengthened our reporting further by increasing direct datacollection to 99% of our overall production, with the remaining
1% modelled. Emissions from third-party manufacturing
increased in 2022, which we attribute in part to COVID-19
restrictions in China. To improve our performance overthe long term, we are now starting to engage with our top
suppliers to better understand their emission reduction plans
and continue to explore ways to diversify our manufacturing
footprint in jurisdictions with lower carbon emissions.
Emissions from air travel in 2022 increased over prepandemic levels with the return of trade shows, alongwith the need for teams spread across multiple offices andcountries to connect in-person for the first time since early2020. We do not expect that volume of travel to be sustainedin 2023 and anticipate a return to pre-pandemic levels overthe coming years.

Our Performance
2019

2020

2021

2022

Scope 3 Emissions

169,386

44,12953,33160,245

Category 1 – Purchased Goods and Services(Tier 1 Manufacturing)

161,987

37,443

46,8401

50,812

2,148

1,930

1,457

932

Category 4 – Upstream Transport and Distribution(Third-party Distribution)
Category 5 – Waste (Owned and Leased) (Non-hazardous)

278

520

463

283

Category 6 – Business Travel (Air Travel)

1,787

953

235

5,052

Category 9 – Downstream Transport and Distribution (Freight)

3,186

3,283

4,336

3,165

1 We recalculated our Tier 1 Manufacturing emissions for 2021 as part of our effort to standardize our sources for emission factors. This led to a higher
emission total than previously reported.

Our Methodology: We use the WRI GHG Protocol Corporate Standard to calculate the emissions within
Scope 1, 2 and 3. The overwhelming majority of our data is collected directly from vendors and suppliers.
Where raw data was not available, we used emissions intensity metrics to model the relevant carbon
footprint. Our carbon emission calculations were verified by a third-party assurance.

13

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOur Climate Action Commitment
Climate change continues to be a global concern, bringing on more frequent and intense drought, storms, heat waves, rising sea levels and warming oceans.
While we are not in a carbon-intensive industry, we recognize that we are a global business and must continue to do our part to mitigate our impacts and adapt
to a changing climate. In 2022, we set out to map pathways to reduce our carbon emissions and impact on the environment. The resulting Climate Action Plan,
the first in Spin Master’s history, lays out progressive targets that will allow us to track our progress and uphold our commitments to future generations.

Our Net-Zero Pathway
Spin Master’s commitment to the well-being of children
includes the responsibility to ensure that we protect theworld that they will one day inherit. Our Climate Action
Plan is focused on meeting that obligation, starting with
our self-generated emissions. The journey to net-zeroemissions1 within Scope 1 and 2 by 2050 will rely onseveral well-planned steps and initiatives, including:

Determining Pathways in Scope 3

70%

reduction in Scope 1 + 2
emissions by 2030

• Transitioning to electric vehicles within
our owned fleet• Reducing owned manufacturing• Upgrading leased building standards andenhancing energy efficiency• Sourcing regionally targeted renewableenergy certificates for no more than 5-10%of total emissions
Achieving our goals will require cooperation across anumber of the departments and our collaborative culture
will be essential to our collective success.

• Reducing the use of virgin plastic and incorporating sustainable
design into our toy portfolio

NET
ZERO

• Collaborating with Tier 1 suppliers directly on their emissions
reduction efforts

commitment for
Scope 1 + 2 emissions
by 2050

Spin Master 2022 Corporate Social Responsibility Report• Diversifying our supply chain to lower-carbon jurisdictions
where possible• Identifying zero-waste solutions for third-party
distribution facilities

85%

reduction in waste
in owned and leased
facilities by 2025

ZERO
WASTE
in owned and leased
facilities by 2035

We will continue to test and learn new innovations within thisarea to further define our pathway within Scope 3 and support
our commitment to protecting the planet for future generations.

1 Targets are absolute and our baseline year is 2019.

14

In developing the Climate Action Plan, it became clear that verifiable
solutions for reducing the larger components of our Scope 3
emissions to achieve a net-zero target do not yet exist. This isparticularly true as it relates to the use of plastic in the manufacturingof toys due to its safety, durability and ability to conform to moulds
and shapes. As a company rooted in innovation and creativity, we
believe that advancements in this area are forthcoming; however, we
are unable to make defined commitments until these alternatives areavailable broadly in the market. As a result, our plan lays out important
initiatives aimed at piloting capacity building solutions within our
Scope 3 footprint, including:

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESWasteIn last year’s report, we outlined programs focused on eliminating waste throughrecycling, reusing and reducing across three critical areas: product, business operations
and production. The successful implementation of these programs served as thefoundation of our waste targets, allowing us to pursue an 85% reduction in waste from
owned and leased facilities by 2025, and a zero-waste goal by 2035.

Consumer Recycling
Our partnerships with organizations like theSustainable Packaging Coalition, How2Recycle andTerraCycle® are important vehicles for promoting
the circular economy. In 2022, we expanded ourTerraCycle® program in the United States to include
packaging in addition to previously loved toys. As
a result, participation grew and the total volume ofmaterials recycled through the program exceeded thatof a playground. In recognition of our achievement, we
will be donating a playground made of recycled plastic
to a Boys & Girls Club in the U.S. in 2023.

We also made the decision to wind down our
TerraCycle® program in Australia due to low
participation. We have diverted the funds used tosupport that program to other waste-related initiatives
that will have a larger environmental impact.

Changing Behaviours

Business Waste Reduction
We completed waste audits in multiple facilities with
our return to office. The results showed important
progress, including at our Toronto HQ, which
improved its waste diversion rate by 19%. Overall, thewaste diversion rate within our offices was 55% in
2022. In 2023, we intend to pilot initiatives focusedon incorporating circular economy practices toextend the life of used products from our offices.

Spin Master’s Earth Buddies teams
provide a platform for employees who are
passionate about sustainability. This past
year, they continued to support a culture ofenvironmental action within the Company
by organizing 37 initiatives across 11 offices.
Events included rooftop gardens, sustainability
markets, tree plantings, nature cleanups andwaste diversion campaigns.

OUR PARTNERS

Waste Generated (metric tonnes)
1,566

15

Production Waste Reduction

Waste Generated (metric tonnes)

We saw a notable reduction in our production waste
in 2022, primarily due to the sale of our factory in
Tarboro, N.C. Additionally, our factory in Calais, France773
was able to further advance its circularity initiatives,
reducing the volume of waste sent to landfill by 27% andincreasing its waste diversion rate to 73%. We intend
to pilot initiatives focused on incorporating circular
economy practices into our product disposal from19
distribution centres in 2023.

1,048

Spin Master 2022 Corporate Social Responsibility Report

1,566

789

1,048
789

773

20

21
19

42%
of waste wasdiverted in 2022

22
20

INTRODUCTION

21

22

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOUR PRODUCTS
As a leading children’s entertainment company, we are committed tocreating magical play experiences for children and their families. We
produce responsibly sourced goods that are safe and of the highest
quality while also providing more sustainable options for consumption.
We have set sustainability-related targets for our packaging and havecommitted to evolving our product design with the environment in mind.

7

sustainably
minded products
launched99%

of our manufacturing facilities
underwent an IETP/Ethical Toy
Program audit, or equivalent, in 2022

Zerorecallsin over
15 years

IN THIS SECTION

16

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENT

Playsponsible

17

Sustainable Packaging

18

Product Safety and Quality

19

Chemicals of Concern

20

Responsible Sourcing

21

Family-Friendly Spaces Program

22

Responsible Marketing and Content for Children

23

OUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Playsponsible™
Playsponsible is our commitment to being
responsible custodians of the world thattoday’s children will one day inherit. We strive
to create more sustainable options within our
products’ lifecycles, specifically as it relates to
product design and packaging, to reduce our
impact on the planet

Mindful Classics™ GamesIn 2022, we introduced a collection offour classic games including timelessfavourites such as Chess & Checkers,
Jumbling Tower, Four in a Row and
Dominos. Each game is made with
Forest Stewardship Council (FSC)
certified wood and paper, bamboo andrecycled plastic, and bundled in plasticfree packaging. In total, the sustainable
and recycled materials in these games
eliminated the need for 55,247 lbs
of virgin plastic – the equivalent of
526 barrels of crude oil.

Responsible Product Design

Kinetic Sand™

We are continually exploring opportunities to reduce theuse of virgin materials in toys through innovative methods
or by incorporating recycled or responsibly sourced
content. Our goal is to maintain the best play experience
while finding ways to minimize our environmental impact.

In the 2021 CSR Report, we highlighted
how our product engineers wereexperimenting with innovativetechniques, such as thin walling, toreduce the use of virgin materials. This
past year, we released three Kinetic Sand
products that utilized thin walling, saving
201,961 lbs of plastic or 1,923 barrels of
crude oil.

In our previous report, we committed to introducing four
sustainably minded products to market in 2022. Throughthe hard work and innovation of our designers andengineers, we exceeded that target and introduced sevensustainably designed products into the market.

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Spin Master 2022 Corporate Social Responsibility Report

Baby GUND®
Sustainably Soft™
Friends

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESOur first line of sustainably
made plush animals is sourced
from 100% recycled materials.
Each of these three animals
is crafted with luxe, ultrasoft recycled plush and fill,
and packaged in sustainable
materials. The use of recycledmaterials in these plushanimals eliminated the needfor 7,781 lbs of virgin plastic –the equivalent of 74 barrelsof crude oil.
* Our calculations are based on theassumptions of 0.4 gal of crude oil
per 1 lb of plastic and 42 gal per 1
barrel of oil.

REPORTING AND DISCLOSURESSustainable Packaging
We are focused on maintaining the joy of unboxing new toys and games while
introducing children to environmentally focused packaging. By using virgin plastic
alternatives and actively seeking new approaches to reducing overall materials,
we continue to evolve our packaging. Our innovative engineers and designers
are also developing ways to integrate toy and game packaging into the playexperience to extend the use.

Our Performance
In 2020, we set packaging targets focused on reducing the use of plastic by 2025. To advance thoseefforts, we directed our resources this past year on enhancing data collection to better monitor progresswithin each target and determining viable pathways to achieving them.

Spin Master 2022 Corporate Social Responsibility Report

Utilizing vegetable or soy-based
inks on 50% of packaging

TARGET:

Reduction of plastic by 50%
in our packaging
To meet our goal of a 50% reduction in the use ofplastic in all packaging materials by 2025, we focusedon three key initiatives this year.
1. We enhanced our data collection process tomeasure our performance on a quarterly basis,
while also creating a mechanism to forecast future
performance.

One example of ourprogress in reducing
plastic in packaging
last year is the Tech
Deck™ Performance
Board package, which
we transitioned from aplastic tube to a paperbox. In doing so, we
eliminated the needfor 20 grams of plastic
Pleaseprovideperunit.hi-res photo

18

TARGET:

2. We unveiled a roadmap for meeting our targets at a
corporate level and shared with each Global Brand
Team (GBT) to ensure its broad implementation.
3. We are making an investment in product margin tooffset additional cost implications often associatedwith alternatives to virgin plastics.
We continued to advance against our targets in 2022
and reduced our overall volume of plastic by 10%
in 2022 versus the baseline year. We are confident
that our roadmap will deliver accelerated results
moving forward.

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLE

We took a significant step in 2022 in terms of meeting
this target. A fulsome audit was conducted to verify theuse of non-mineral based inks, such as vegetable andsoy-based inks, across our manufacturing footprint.
As a result, we identified that 23.7% of total packaging
units in 2022 are using vegetable and soy-based
inks. We also took learnings from our audit to develop
a strategy that ensures we are able to reach the
50% target by 2025.

TARGET:

Moving 100% of petroleum-based
blister forms to sustainable
alternatives
In reviewing this target this past year, we were unable
to identify a clear pathway to achieving our goal by2025 and have made the decision to narrow our focus
to the two previously mentioned goals. We believe a
notable amount of the work entailed in this target isalready covered by the 50% plastic reduction goal andhave made the decision to focus our resources onthat effort. Furthermore, we believe that our goal of
reducing the use of virgin materials in packaging will
also impact blister forms.

OUR COMMUNITIESREPORTING AND DISCLOSURESProduct Safety
and Quality

1. Assessment
We pull together the global product regulation framework, product histories, design, brand andconsumer insights in assessing safety parameters for our brands and products.

We adhere to stringent safety and quality standards forevery product and play experience, ensuring we comply withall applicable regulations where we sell our products. Our
process is illustrated below, showing how safety and quality
are embedded in every aspect of toy production, including
the design, development, manufacturing and distribution-touse phases.

2. Product Development
We refine our products based on consumer insights and the application and establishment of global
and unique regional product configurations. Every country Spin Master distributes in has distinct
children’s regulatory safety laws requiring government certifications or equivalent endorsements,
and we adapt accordingly.

Spin Master’s Quality Centre of Excellence

3. Q uality Testing

Our Quality Centre of Excellence is responsible for product safety, integrity,
legal and factory compliance, product design and execution oversight, striking
a critical balance between innovation and regulation. It also connects technicalexpertise, legal affairs, sustainability, sales and consumer insights.
The Centre of Excellence receives continuous flows of customer and consumer
feedback including information received from sales team account engagement,
insight teams’ studies on consumer preferences and direct product testing,consumer-care metrics, and results from online store scores.

We take products through several iterative production pilots – during which they are evaluatedagainst safety and regulatory standards, durability and reliability – in addition to consumer focus
groups. This critical step concludes in formal safety certifications by independent, accredited thirdparty laboratories for global product distribution and continuous manufacturing consistency. Spin
Master products conform to several requirements, including:a. USA CPSC and ASTM requirements
b. European Standard EN71 and the Europe Toy Safety Directive
c. Canada Consumer Product Safety Act and associated regulations
d. Norma Oficial Mexicana (NOM) certification for Mexico
e. International Organization for Standardization (ISO) toy safety standards
f. Other regional safety standards – the Company archives laboratory certifications and makes
customer-available links traceable to every individual product shipment

4. R eviews and Surveys
To gain new insights into future product lines, reviews and surveys are completed on a regular basis
through Spin Master’s Quality Centre of Excellence. These insights inform new products or help toimprove current products.

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Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESChemicals of Concern
All the materials used in our products are rigorously tested for safety andproduct integrity. We have a regularly updated restricted substances list
(RSL) of over a thousand substances based on global regulations andindustry standards, which provide guidance on restrictions and bans forcertain materials.

Bisphenol-A (BPA)

Phthalates

Substances of Very High Concern (SVHC)

BPA is typically used in polycarbonate, ashatterproof plastic, in trace amounts. We
follow all regulations related to BPA and do
not produce any toys that would be mouthedor would touch food for children under
36 months.

Phthalates have been eliminated from all ofSpin Master’s products.

There are no SVHC chemicals over 0.1% byweight in any of our products, as is globally
regulated within toy safety compliance.

Brominated flame retardants (BFRs)
Spin Master does not use any BFRs in its
products. We have designed alternative
methods to meet flammability requirements.

Lead
Spin Master tests for lead in all of its products
and is fully compliant with all applicableregulations and standards related to safe
levels of lead in products for children.

Polyvinyl chloride (PVC)PFAS

PVC is found in some soft plastic toys, suchas inflatable pool floats and collectible action
figures, due to its safety, flexibility, durability
and ability to retain colour. We have not yet
identified a suitable alternative material to
PVC for these products and continue totest products containing PVC regularly forsafety and quality compliance. In 2013, weremoved PVC from all packaging given its lackof recyclability.

PFAS are a category of hundreds ofchemical variants commonly referred to
as “forever chemicals.” Spin Master has
no reportable PFAS in our products at thistime. Forthcoming global, national and state
regulations are focusing on (a) intentionallyadded PFAS; (b) categories of cookware,
flame-retardant chemicals, stain- and waterresistant products; and (c) oil- and greaseresistant food contact packaging wraps. We
recognize the potential for PFAS in productsthat are water- and stain-resistant and we arereviewing options to reduce long-term risk.

Our Performance
We have a strong track record of product safety and quality, and we have not had any recalls, fines or settlements related to
product safety in over 15 years.
2019

2020

2021

2022

272

274

253

241

Number of recalls

0

0

0

0

Total units recalled

0

0

0

0

Number of Letters of Advice (LOA)

0

0

0

0

Number of legal and regulatory fines and settlements associated with product safety

0

0

0

0

Annual production (millions of products)

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Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Responsible Sourcing
Spin Master is a global business with 26 offices, distribution in over 100 customer markets
and manufacturing in 10 countries in 120 facilities (SASB CN0604-B). Almost 99% of our
production is outsourced (SASB CN0604-B). Other than our Meccano® and Kinetic Sand
brands, which are made in France, all our manufacturing occurs in facilities owned andoperated by third parties in Cambodia, China, India, Indonesia, Mexico, Netherlands, Poland,
Sweden and Vietnam. We have several measures in place to ensure our products are
sourced in a responsible manner from suppliers who share our values and commitment tobusiness integrity.
We choose suppliers based on a number of criteria,
including cost to market, time to market, product capacity,
location logistics efficiency, engineering and technicalcapacity, financial health, environmental performance,and social compliance to the International Council of
Toy Industries (ICTI) Ethical Toy Program (IETP), thelatter of which is non-negotiable. In addition, 78% of
Spin Master’s Tier 1 suppliers are ISO 9001 certified. Spin
Master has been an active participant of IETP since its
inception. Through regular audits, as well as training andeducation, the program provides guidance on responsible
supply chain practices, including audit process, businessethics, discrimination, disciplinary practices, employee
representation, employment practices, environment andchemical safety, modern-day slavery, safety, underagelabour, wages and working hours.

21

Spin Master 2022 Corporate Social Responsibility Report

Our Code of Conduct for Suppliers and Manufacturersand Human Rights Policy stipulate that our suppliersmust have IETP certification and vendors must be
sealed by IETP or an equivalent program as outlinedin the respective policies. Spin Master requires its
third-party manufacturers and distributors to comply
with Spin Master’s Code of Conduct for Suppliers andManufacturers, which is designed to prevent products
manufactured by or for the Company from being produced
under inhumane or exploitative conditions and includes
a bare minimum of IETP compliance. We provide further
context in our Statement of Modern Slavery andTransparency in Supply Chains.
At the moment, Spin Master and our licensors do notformally require Tier 2 (component) or Tier 3 (raw material)
IETP audits; however, exceptions are made if materials
or components are or can be identified as Spin Master or
licensor intellectual property. To learn more about the ICTI
Ethical Toy Program, go to ethicaltoyprogram.org.

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESFamily-Friendly Spaces Program
The ICTI Ethical Toy Program’s (IETP) Family-Friendly Spaces (FFS) program creates factory-basedchildcare facilities that enable workers to migrate domestically to larger cities to spend more timewith their children. FFS provide a safe environment for children to play, access learning opportunities,
develop social skills and spend time with their parents. In 2022, Spin Master continued its funding
to support this important program, enabling its expansion to two new factories. In 2022, the FFS
program was implemented at 17 factories, benefitting nearly 800 children. Spin Master employees
also had the opportunity to visit a Family-Friendly Space, delivering toys to children and seeing theimpact first-hand.

Our Performance
All Tier 1 manufacturing vendors underwent an IETP or equivalent audit in
2022. The lone Tier 1 manufacturing facility within our supply chain thatwas not audited was our owned factory in Calais, France, which we havedirect operational control over and is in a country with strong labour laws
and enforcement.
2019

2020

2021

2022

213
(2 owned)156(2 owned)130(2 owned)120(1 owned)

100%

99%

97%

99%

Number of facilities audited
to IETP orequivalent program

213

155

126

119

Direct suppliers’ nonconformance rate withexternal social responsibility
audit standards

8%

6%

6%

0.3%

Rate of non-conformances
subject to corrective action

100%

100%

100%

100%

Direct suppliers’ priority nonconformance rate

4%

6%

6%

0.3%

Direct suppliers’ associatedcorrective action rate forpriority non-conformance

100%

100%

100%

99%

7

5

2

3

Total numberof manufacturing facilities

We also committed to being a founding supporter of IETP’s ambitious effort to grow its reach and benefit 30,000 children by theend of 2025 through the establishment of 100 FFS and supporting 50 factories in being publicly recognized as a Family-Friendly
Factory (FFF). This support will also help IETP expand the FFF program to additional countries within our manufacturing footprint.

Percentage of facilities
audited to IETP orequivalent program

Spin Master has been a longterm supporter of the IETPWorker Well-Being Programs
and were amongst the firstto confirm funding to enable
our 2025 ambition to support
more than 30,000 children.
Worker well-being is at theheart of all we do at IETP and
we are delighted to work withthe team at Spin Master who
share the same commitment
to workers as we do.”Number of contracts
with suppliers that were
terminated as a result of
non-conformance

Carmel Giblin,
President & CEO, ICTI Ethical Toy Program

Family-Friendly Spaces teachers at a teacher training session holding gifts donatedby Spin Master.

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Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Responsible Marketing andContent for Children
We value the trust that children and families place in Spin Master andour products, content and communication. To ensure we are responsibly
marketing to and communicating with our users and audiences, we adhere
to global and regional regulations such as the U.S. Children’s Online
Privacy Protection Act (COPPA) as well as voluntary standards such as
those provided by the Children’s Advertising Review Unit (CARU), and act
in accordance with the Federal Trade Commission
Advertising Standards.
We have supplemented regulatory compliancewith our own corporate policies, including
those for responsible marketing andcontent for children and protecting children
who are involved in our entertainment,commercials, social and digital media
campaigns and product development.
Additionally, Spin Master employees
involved in communications, marketing andcustomer service receive training regarding
responsible marketing to children andapplicable regulations.

In casting talent for our commercials,
entertainment and digital content we
adhere to all laws and regulations related
to the employment of minors. We also follow
children’s safety and rights guidelines set
out by such bodies as the Alliance ofCanadian Cinema, Television and Radio
Artists (ACTRA) and the Screen Actors
Guild–American Federation of Television
and Radio Artists (SAG–AFTRA).

Inclusive Content
Our deep understanding of play coupled with ongoing insights from parents and children informs our approachto creating entertainment, toys and digital games that resonate. We recognize the important role our products,
games and characters play in influencing children’s lives and make great efforts to ensure they reflect positive
values and represent diverse populations.
Spin Master Entertainment
develops content that reaches
audiences in more than
190 countries and 30 languages.
Our team strives to create stories
and deliver content that reflects
the diversity of the communities
we serve. We work together withproduction partners to ensure
diverse representation both onscreen and behind the scenes.

Our digital games are playedby children in more than
230 countries and we take our
global leadership seriously.
Our digital game studio, Toca
Boca, incorporates diversity andinclusion in their approach to gamedevelopment with the mission
to let all children experience
the positive power of play, andensuring no child should ever feel
excluded within the realm of Toca
Boca. Three principles are followed
to ensure inclusion:

1. Defining diversity
Toca Boca has defined sevenaspects of diversity most relevant
for kids; avoiding stereotypes andfinding norm-creative solutions:• Physical characteristics, culturalcharacteristics, functional
diversity, body shape, gender,family structure and age

2. Work with experts tocover knowledge gaps
The team leverages a Diversity
Advisory Board of external experts
as a sounding board during
product development.
3. Create a positive teamcultureThe team is committed tocontinually evolving the approachto diversity and fosters a culture
in which curiosity and inquiry areencouraged to learn about thedimensions of inclusion.

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Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOUR PEOPLE
Our employees are the driving force behind our success,and we are committed to providing an inclusive workplace
where everyone feels supported, valued and respected.
Over the past year, we strengthened our culture of innovationand inclusivity through investments in leadership training,enhanced benefits, a new employee share-ownership programand programming that celebrates the diversity that makes ourworkforce so special.

50/50 85%
employeegender split

company pride98%

gender pay equity
achieved

IN THIS SECTION

24

Employee Engagement

25

Learning and Development

26

Equity, Diversity and Inclusion

27

Fostering Inclusivity in Our Industry

28

Our Diversity Representation

29

Health and Safety30

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Employee Engagement
By listening to and learning from our employees we can make positive changes to improve our culture and workplace.
Through the feedback gathered in multiple surveys over the year, we identify opportunities to continuously improve theemployee experience.
Over the last year, we saw meaningful improvements in our employee
engagement results, returning to pre-pandemic levels, and employee pride,
which reached the highest level since we started tracking this metric.
Two key factors contributing to the positive results were the growth of
employee recognition and the successful implementation of our hybrid
work model, allowing employees to connect with colleagues in-office while
also maintaining the flexibility to work from home when needed or desired.

2021 Employee
Engagement Survey
OverallOverall
Participation
Participation

OverallOverall
Engagement
Engagement

OverallOverall
Participation
Participation

OverallEngagement
77% Overall
77% Engagement
77% 77%
73% 73%
72% 72%
77% 77%
77% 77%
73% 73%
72% 72%

Celebrating Our Employees
In 2021, we introduced two new programs to grow the culture of recognition
within the Company: SPIN Masters, a tool that allows colleagues to recognize
one another, and Employee Appreciation Week (EAW). We saw an incredible
increase in the use of SPIN Masters in 2022, with over 30,000 recognition
instances. Additionally, we elevated EAW this past year by holding inperson events and activities around the world to thank and recognize theaccomplishments of our employees.

Employee Resource Groups
Our five Employee Resource Groups (ERG) allow
employees from across the globe to share ideas,address challenging issues and strengthen our
inclusive culture.

87%

89%
87%

89%
88%

88%

87%

89%
87%

89%
88%

88%

66%

66%

66%

66%

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

OverallOverall
ManagerManager
Effectiveness
EffectivenessCompany
Company
Pride Pride

OverallOverall
ManagerManager
Effectiveness
Effectiveness
83% 83%
83% 83%
79% 79%74% 74% 83% 83%
83% 83%
79% 79%74% 74%Company
Company
Pride
Pride87%85%
85%
84% 84%
81% 81%
87%
85% 85%
84% 84%
81% 81%

87%
87%• Diversity, Equity & Inclusion• Women’s Empowerment Network• Earth Buddies (Office Sustainability)• Employee Experience• Philanthropy

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Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTS

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

19

19
20

20
21

21
22

22

OUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESLearning and Development
This past year, we strengthened our offerings to support the lifelong learning and professional
development of employees. In addition to our core programs, we introduced two new
initiatives focused on enhancing leadership and growing innovation:

Leadership Summit

Spin Talks

We hosted two Leadership Summits that brought together
over 100 leaders (VP-level and above) from North America,
Europe and Asia-Pacific to elevate their collective
leadership capability and further their personal andprofessional development. Sessions included reflecting onleadership styles, how to multiply teams and how to create
exceptional employee experiences.

Spin Talks, which was introduced in 2022, is a series ofin-person and virtual sessions designed to challenge
employees to think differently and reach new goals. This
year’s speakers included prominent thought leaders on
topics such as recognizing unconscious bias, championing
diversity and being an innovative leader.

Compensation and Benefits
We design our total rewards packages to be competitive, inclusive and tomeet the financial, emotional and physical well-being of employees. Our
gender-based pay equity rate across all levels globally improved to 98%,
maintaining our commitment to achieving a rate close to 100% on anannual basis.
Employees are provided with robust packages that include medical,
dental and vision benefits, employee assistance program, life anddisability insurance, short- and long-term disability leave benefits, paidvacation and holidays, and wellness offerings. Parental leave, both paid
and unpaid, is offered depending on the situation and in accordancewith local laws and regulations. To further strengthen our position as
an employer of choice, we fortified our employee benefits this past year
by increasing wellness and mental health support, providing increased
vacation benefits and adding further financial support through our firstever employee share purchase plan.

2,280

full-time employees

12%

Learning and Development Programs

We offer a range of professional development opportunities to help
build knowledge and skills at work and home, including:voluntary turnover rate98%

• Tuition reimbursement for two courses a year
• LinkedIn Learning• Masterclassgender pay equity achieved• Outschool tuition credits to access a leading children’s
education platform

We are committed to achieving
and maintaining close to 100%on an annual basis.

26

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESEquity, Diversity and Inclusion
Being open-minded and embracing diversity are values we hold closely as part of ourCompany culture. We are committed to providing an inclusive workplace where employees
can learn, celebrate and support one another as a community.

Our Inclusive Sandbox
Our annual employee representation survey continues toinform our Equity, Diversity and Inclusion (EDI) strategy
by allowing us to better understand our workforce andensure all communities feel welcome in our sandbox. Last
year, we leveraged the information gathered from the2021 representation survey to enhance the programmingorganized through our Women’s Empowerment Network(WEN) and EDI Employee Resource Groups in conjunction
with national heritage months, Pride, International
Women’s Day, Mental Health Awareness Month and many

more. We also continued our Faces of Spin series,
shining a light on employees from different backgrounds
in the spirit of sharing experiences and helping topromote positive change.
We participated in the Bloomberg Gender-Equality
Index to enhance our transparency on the issue, which
also gave us the ability to benchmark against 485
companies globally.

Supporting Our Colleagues
Spin Master was proud to march as a company in the Toronto Pride Parade for thevery first time as a sign of its strong support for the LGBTQ2AI+ community. Over
100 employees represented Spin Master at the parade, handing out toys, cards andpuzzles to participants.

“I’m honoured to have marched in the 2022 Pride Toronto Parade –Spin Master’s first foray into Pride celebrations! As a new employee
last summer, I felt an incredible sense of belonging to work
alongside dozens of volunteers spending countless hours preparing.
Spin Master is leading the way in equity, diversity and inclusion in
our industry, and I’m so privileged to be able to help showcase that.
Happy Pride, from our sandbox to yours!”
Trenton MacDuff, Spin Master Employee, Toronto Office

Embracing a Culture of Curiosity, Contribution
and Community
Honouring Asian American Pacific Islander (AAPI) Heritage month, Spin Master’sLos Angeles (LA) office hosted an event with Jonathan Chang, an LA-based designer
who uses illustration to enact positive social change for all communities. Following thepresentation, a “Tastemakers and Changemakers” reception was held with a group of AAPI
business owners who uplift their communities through their company structure and product.

“The differences that used to make me feel isolated are now theones that make me proud. Spin Master has a rich and diverse communitythat helps us celebrate them.”
Ashley Chun, Spin Master Employee, Los Angeles Office27

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESFostering Inclusivity in Our Industry
Spin Master’s commitment to promoting inclusivity extends beyond the Company. Through the Spin Master Futureof Play Scholarship Program and support for organizations like Women in Toys (WiT), we are helping to cultivate thenext generation of diverse leaders in children’s entertainment.

Future of Play
Scholarship Program
The Future of Play Scholarship
Program provides aspiring creatorsfrom equity-seeking groups andcommunities (BIPOC, LGBTQIA+ or
women) in North America financial
support to pursue post-secondary
education and be a part of the next
generation of creators, inventors,
designers and entrepreneurs inchildren’s entertainment. In 2022,
we supported the studies of 15
students as part of our commitment
to welcome eight new students every
year and provide funding through thecompletion of their programs.

The support from the Future of Play Scholarship has transformed
my journey and provided a safe bridge between my dreamfuture and my current reality. Thank you for all the support andencouragement that you have provided for me and for otherstudents as well.”

WiT Empowerment Day
Diversity of thought fuels ideas and innovation
and we’re passionate about helping to foster a richand diverse inventor community. Spin Master teammembers served as mentors for WiT’s Empowerment
Day. Close to 100 female toy inventors andentrepreneurs shared their concepts and benefitted
from the experience and mentorship to help take theirideas to the next level.

Sylvia Tuomaranta, 2022 Recipient, Otis College of Art and Design2022 Future of Play Scholarship recipients.

28

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOur Diversity Representation
2022 Representation Survey

CanadaGender Ratios

United States

17%
14%

13%
11%
9%

10%

50%

12%

11%

Overall Female Employees
7%

6%
4%

3%

0%
LGBTQIA+Disability(Visible or Invisible)

Asian

5%

Black

1%

0%

Indigenous

Latin American/
Hispanic

2%0%

Paciﬁc Islander

2%

17%

0%
South Asian

Middle Eastern

2 or more races

Female Board Members

19%
Female Executives (EVP & up)

Middle Management

FemaleMale

Senior Management

Undisclosed(Team Leaders, Supervisory, Managers and Senior Managers)>< 30
years old 50%

50%

30-50
years old 51%

48%

> 50
years old 29%
Total 47%

69%

Male

Undisclosed(Directors and Above)

38%

< 30
years old 100%

3%

Females in Senior Management

30-50
years old 42%

1%
2%

50%

Female>>> 50
years old 32%
Total 38%

57%

1%

67%

1%
60%

2%

47%
Females in Middle Management

29

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESHealth and Safety
In 2022, we completed the rollout of core components of the Spin SAFE
Health and Safety program across all offices, ensuring employees haveaccess to the knowledge and resources to work safely. Moving forward, weare focused on strengthening this foundation through additional initiatives,
including integrating safety training into employee onboarding.
Recordable workplace accidents increased by one in 2022, which we attribute to the fulsome
return to office, greater awareness of the Spin SAFE program and the growth in our employeebase. To strengthen our performance measurement given these factors and our growing
employee base, we started tracking our total recordable incident rate in 2022.

Our Performance
2019

2020

2021

2022

Recordable workplace accidents*

24

10

8

9

Total Recordable Incident Rate

–

–

–

0.09

Deaths0000* Denotes accidents that occurred within Spin Master owned or direct-leased facilities.

30

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOUR COMMUNITIESWe believe that every child should have the opportunity togrow, explore and learn through play. Through our in-kind
donations, investments in educational programming, local
community engagement and employee volunteerism, we
strive to reach those children in greatest need – no matter
where they are. At the beginning of 2022, we set an ambitious
target of creating a positive impact for half a million children.
As a result of the incredible passion and dedication of ouremployees and partners, we surpassed our goal.

610,000 450,000 5,000+
children impacted

toys donatedvolunteer hours

IN THIS SECTION

32

Future of Play

31

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTS

Spreading Joy Globally

33

Our Culture of Giving

34

OUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESFuture of PlayWe give back to our communities through initiatives that share our love of play, promote creativity and develop new skills.
Our strategic partnerships and investments in educational programming help instill confidence in kids while promoting fun.
In 2022, we worked with over 135 organizations in more than 30 countries to bring the magic of play to children.

In 2022, we signed on as the National Lead Partner for the2022 National Invention Convention, which challenges students
to develop creative solutions to everyday challenges. Our
support allowed the convention and associated programming
to expand to grades 1–8 and grow participation across Canada
by 373%.

With a culture rooted in invention and innovation, weconstantly seek to grow that culture in the toy industry
and beyond. We partnered with Futurpreneur Canada
to support 14 businesses by providing over 48 hoursof mentorship over the course of the year. Additionally,
we fund the Toy Invention Program, helping aspiring
inventors create something never imagined before atschools around the world.

32

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTION

Promoting Problem-Solving
with the Rubik’s Cube
Introducing children to the power of the Rubik’s Cube
helps develop a life-long skill that can be used tosolve complex problems. We partnered with several
organizations across North America in 2022 to unlock
the next generation of curious minds, one cube ata time.
• We hosted two Rubik’s Cube solving Master Classes
with the Boys & Girls Clubs of America, impacting
children in over 100 clubs as well as virtually
through their My Future platform.
• We collaborated with School on Wheels to teachyouth experiencing homelessness in LA to solve
the Rubik’s Cube.
• We partnered with Starlight Children’s Foundation
and Rebel Girls to provide the Rubik’s Cube to children
in over 100 hospitals as part of the Rebel Girls Fest
2022 Change the World kits.

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

Spreading Joy Globally
The Toy Movement and Child Friendly Spaces (CFS) Play Kits initiatives are designed to bringcomfort and reprieve to children impacted by war, poverty and natural disasters through play.
In 2022, we increased our efforts to reach more children in displaced and disadvantaged
situations through the donation of nearly 200,000 toys as part of three Toy Movement andseven CFS Play Kits initiatives, which bring activities-based toys to centres set up to provide aprotected space for children in areas of crisis and instability. In partnership with organizations
like Save the Children Canada and World Vision Canada, these initiatives will impact over
325,000 children around the world.

Answering the Call
Amid the conflict in Ukraine, millions of children and families were forced to flee
their homes in search of safety. Motivated by our guiding principle to create magicand spark joy for children, we came together to provide support for those impacted
and displaced.

$100,000

100,000

Additional

Established an
emergency funddonated to the Red Cross
and UNICEF

toys donated for refugee children
arriving in bordering countries$43,000

Toy Movements
Somaliaraised for humanitarian relief
through a matched donation
campaign

Tanzania
Ukraine Relief (Hungary,
Moldova, Poland, Romania
and Slovakia)

to support employees in borderingcountries in need of financial
assistance

CFS Play Kits
Initiatives
BurundiEl Salvador

The kindergarten that my daughter attends provided support
for children from Ukraine. Since I speak Russian and understandUkrainian, I began volunteering with children to teach them basic
words and phrases and provided support to teachers to help thembetter understand the needs of the children.”

Lebanon
MalawiRwandaSouth Africa
South Sudan

Maria Posokhina, Supply Planner, Bratislava, Slovakia
Employees in Spin Master’s Bratislava office went the extra mile to welcome 		
refugees arriving from Ukraine by hosting families, donating toys and reading
to children in community centres.

33

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOur Culture of Giving
Spin Master employees are actively engaged in our philanthropy programs. To reinforce our culture of giving,
we provide employees numerous volunteer opportunities and the ability to support causes that matter to themthrough matched donation campaigns.

Volunteerism

Global Season of Giving

Through our employee giving platform, we regularly promote volunteer
opportunities. In 2022, our employees recorded more than 5,000 hours
volunteering in their communities, experiencing firsthand how ourphilanthropic work directly impacts the children we strive to empower.
Given the level of enthusiasm and engagement, we have elevatedour volunteerism program and will be rolling out more rewards andopportunities for employees in 2023.

The end of the year marks our Global Giving Season, a time of givingback and spreading joy for those less fortunate. We work with local
charities around the world to organize events to share the timelessmagic of play.
Canada: Caring & Sharing returned as an in-person event for the firsttime in three years. Over 300 volunteers participated in this year’s
event, impacting more than 1,600 kids.
United States: Our offices in New York and Los Angeles organized
Caring & Sharing celebrations in partnership with the Boys & Girls
Clubs of America, as well as other local community events that brought
toys to children in need.
Europe: Employees organized holiday parties for children that included
new toys and activities for all who participated.
Asia: Employees across our offices hand-delivered toys and interactedwith children in local hospitals to help spread joy during the holidays.
Donations

2019

2020

2021

2022

In-kind donations (units)

102K

460K

170K

450K

Cash donations1 ($USD)

$978K

$897K

$1.95M$3.01M

1 Cash donations include monetary contributions to registered charities, cost of goodsof donated products and direct operational costs associated with donations.

It is great that a big company like Spin Master is giving employees the opportunity to donate
toys to children in need. I feel proud to be part of volunteering for this great experience.”

2

matched donation
campaigns

172

charities
supported$118,000
raisedAviraj Patale, Quality Engineer, Bangalore, India

34

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESREPORTING ANDDISCLOSURESIn 2022, we continue to report against the Sustainable Accounting Standards
Board (SASB) Toys and Sporting Goods Standard, the Global Reporting Initiative(GRI) Universal Standards, Task Force on Climate-Related Financial Disclosures(TCFD) Recommendations, and the UN Sustainable Development Goals (SDGs).
Reporting against these frameworks allows us to demonstrate our performanceon critical sustainability issues more transparently and provide stakeholders withthe ability to assess our impact in a consistent manner. In FY2024, we will reportagainst the recently approved IFRS S1 and IFRS S2 standards to uphold ourcommitment to transparency.

IN THIS SECTION

36

2022 Risks and Opportunities

35

Our CSR Priorities

39

Performance Data

40

UN Sustainable Development Goals

43

Task Force on Climate-Related Financial Disclosures

44

GRI Content Index

48

CSR Report Disclaimer

56

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURES

2022 Risks and Opportunities
We see a number of risks for the business in the short, medium and long term from asustainability perspective. Within this section we also identify the measures to mitigate risks
and turn them into opportunities.

Risk

Mitigation

Opportunities

We have been measuring our carbon footprint for a number of years, in addition tousing renewable energy certificates and offsets for our Scope 1 and 2 emissions
as well as some of our Scope 3 emissions. This year we continued to invest in
improving our data collection, putting together a carbon reduction plan to help us
achieve a 70% reduction in Scope 1 and 2 emissions by 2030 and reach net-zero by
2050. We are also working on a plan to address our Scope 3 emissions. Please see
the Our Performance section and our TCFD response for more details.

Executing our Climate Action Plan will help us
operate more efficiently. We also think that it
will help us be more resilient in an increasingly
carbon-constrained world. Lastly, we believe thatnew ways of working will also help us innovate
new products and services.

The effects of climate change
Climate change will create a number of transition and physical risks for us.

We have also divested our manufacturing facility in Tarboro, which has substantiallyreduced our Scope 1 and 2 footprints. We have been diversifying our third-party
supplier factory base in multiple countries to ensure flexibility and resilience given
geopolitical, economic and climate challenges.

Product quality and safety
The toy industry is highly regulated, and product quality and safety are fundamental to operatingin this sector. Any defects could cause significant liability and reputational risk among ourcustomers and the families that we serve.

36

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTION

Product quality and safety protocols, standards and controls are deeply embedded
within the organization and industry through programs like the Ethical Toy
Program. We are proud to say that we have not had any recalls for 15 years. See
the Product Safety and Quality section for more details on the comprehensive
program we have.

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLE

A constant focus on product quality and safety
ensures that this mindset is part of our culture andthat we continue to build trust with our customers
and families who purchase our products. In addition,
this provides a continued opportunity for us toevolve product and safety standards with experts
and other stakeholders in the industry.

OUR COMMUNITIESREPORTING AND DISCLOSURESRisk

Mitigation

Opportunities

We work closely with our manufacturers to source input materials and we havebuilt contingency plans that factor in disruptions and substitutions into our cost of
goods sold.

In working with new suppliers and regions, orbeing faced with cost and supply scarcity, we havefound that it has brought new ideas and sources ofinnovation for production, materials and transport.

The integrity of the supply chain
As a trend-driven business, Spin Master depends on reliable sources of materials, efficientmanufacturing and timely distribution of products.
Plastic resin is the primary material in Spin Master products and packaging. We are looking to
reduce the amount of virgin plastic we use and to use sustainable alternatives where available.
The availability, efficacy and cost effectiveness of these materials is important to the future ofour business.
Spin Master’s business and operations could be materially and adversely affected by politicalinstability, civil unrest, future pandemics or other public health crises, earthquakes, natural
disasters, and other natural or man-made economic, political or environmental disruptions.
Disruptions, and government responses to any disruption, could adversely affect Spin Master’sbusiness, financial position, sales and results of operations and may vary based on the lengthand severity of the disruption.
Disruptions in the supply chain, including port congestion and container availability, are a sectorwide issue and may negatively affect timely distribution, an important issue with customers andconsumers, and therefore our revenues.

Supply chain disruptions are partially mitigated by our geographical diversification
strategy and continuing to manufacture close to our key markets. This requires
ongoing assessment and monitoring.
We have clearly set out our expectations for labour standards, human rights
and environmental regulation within our Code of Conduct for Suppliers andManufacturers, and it has been harmonized through programs such as the
Ethical Toy Program. We have robust programs across our supply chain to monitor
adherence and to ensure that it is conducted efficiently at industry level.
Lastly, during the past few years where supply chains have been significantly
disrupted, we have built contingency plans, using alternate modes of transport andaccessing alternate ports to build resilience.
Please see the Responsible Sourcing section for more information.

Scarcity of specialized talent
The toy and entertainment industry relies on talent with a specialized skill set, which is currently
in high demand. This talent is typically concentrated in specific markets outside of Canada. As aresult, we need to be part of shaping the future by developing ecosystems for talent in partnershipwith the education system and creating attractive workplaces for talent.

We have offices in several strategic locations including Los Angeles, New York,
Toronto, Paris and London.
We continue to build our programs to engage employees and monitor employee
satisfaction regularly. We have also built out partnerships and curricula with various
schools including Humber College in Toronto, Fashion Institute of Technology
in New York and Shenkar College of Engineering, Design and Art in Ramat Gan,
Israel. We have also set up scholarships for individuals from under-represented
communities to enter the toy, entertainment and digital games sector.

As we continue to deepen our partnerships witheducational institutions, communicate and shapecurricula, and grow our presence and recruitment
efforts, we believe that this will create a morediverse and workforce-ready pipeline to take on
future roles at Spin Master.

See the Employee Engagement and Future of Play sections of the report for
more details.

37

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESRisk

Mitigation

Opportunities

We have been reporting our CSR information for three years, and we havelearned a great deal during this period. We have our report reviewed by our legal
team to ensure claims are defensible, and starting this year, we have moved ourdata collection to a third-party platform that allows for an audit trail. We havealso engaged our audit firm to assess our disclosures against emerging nonfinancial disclosure frameworks. Lastly, we have engaged a third-party assuranceorganization to review our information – in this case, our carbon footprint. This
will ensure that we are communicating information accurately and in line withaccepted protocols.

We believe that continued strong performanceon environmental, social and governance metrics
provides long-term value for Spin Master, and is a
proxy for good management. We will continue toimprove our transparency and performance in ourefforts to build trust with our stakeholders.

We believe that play is a timeless activity. Though our major target demographic ischildren, over time we are diversifying our product categories to appeal to a broader
audience, including in board games, digital games and licensed offerings.

We believe that changing demographic trends
allows us to evolve our offerings in the realm of playand open up new market opportunities.

Increasing transparency requirements and crackdown on greenwashingOver the past few years, many companies, including Spin Master, have been asked to provide
more disclosure of non-financial information, which we have included in our CSR Report. Globally,
several major securities regulators are moving towards more stringent regulation around thedisclosure of this information due to an increase in greenwashing. This could lead to a greater
possibility of litigation risk, reputational risk and increased cost of reporting over time.

Global fertility rates and population trends
Examining global population trends reveals that while the global population is increasing,birth rates are slowing. The fertility rate in many developed markets is decreasing below the
replacement rate. Less children globally represents a market risk to our business, which has
traditionally been on toys, entertainment and digital games for children.

38

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESOur CSR Priorities
PHILANTHROPY

DIVERSITY AND ENGAGEMENT

Helping children grow, learn and explore
through play
Impact
1/2 million
children(2022)

Fostering an inclusive culture
where everyone can thrive and growAward
8 Futureof Play
Scholarships

Report volunteer
hours (2022)

CLIMATE

Set and meet
employeeengagementtargets (2030)

Approximate
50-50 gender
split for all
managementlevels (2025)

50% reductionof plastic in our
packaging(2025)

Achieve andmaintain close
to 100% pay
equityReportrepresentation
survey results

Develop 4 Responsibly
made SKUs (2022)

Audit 100%
factories

In the interim, offset
100% of our selfgenerated carbon

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENT

Utilize ecofriendly inks
on 50% of
packaging(2025)

WASTE

Sourcing production in a responsible mannerfrom suppliers who share our values andcommitment to integrity

70% reductionin Scope 1 + 2
emissions(2030)Develop a
Climate Action
Plan (2022)

39

Producing the highest quality goods and developing
sustainable production with our portfolio

RESPONSIBLE SOURCING

Doing our part to mitigate our environmental
impact and adapt to changing climate

Achieve net-zero
reduction in Scope 1 + 2
emissions (2050)

PRODUCT AND PACKAGING

Reducing waste throughrecycling, reusing and reducing

Establish
and enforce
Supplier Codeof Conduct(2020)OUR PRODUCTSOUR PEOPLE

Establish
product
takeback
program (2021)

Zero landfill
waste inowned/leased
facility (2035)

80% reduction in landfill
waste in leased/owned
facilities (2025)

Conduct waste audits
in owned/leased
facilities (2022)

OUR COMMUNITIESREPORTING AND DISCLOSURESPerformance Data
Metric

2019

2020

2021

2022

Unit of Measure

Product

SASB reference (if applicable)

Annual production

CG-TS-000.A

272

274

253

241

millions of units

Number of production facilities

CG-TS-000.B

213

156

130

120

number of facilities

Percentage outsourced

CG-TS-000.B

96%

95%

94%

99%

% (by units or dollar value)

Number of recalls

CG-TS-250a.1

0

0

0

0

number of recalls

Total units recalled

CG-TS-250a.1

0

0

0

0

number of units

Number of Letters of Advice (LOA) received

CG-TS-250a.2

0

0

0

0

number of letters

Number of legal and regulatory fines and settlements associated with product safety

CG-TS-250a.3

0

0

0

0

number of fines and settlements

Description of processes to assess and manage risks and/or hazards associatedwith chemicals in products

CG-TS-250a.4

Percentage of facilities audited to ICTI Ethical Toy Program (IETP) or equivalent program

CG-TS-430a.1

100%

99%

97%

99%

%

Number of facilities audited to ICTI Ethical Toy Program or equivalent program

CG-TS-430a.1

213

155

126

119

number of facilities

Direct suppliers non-conformance rate with external social responsibility audit standards

CG-TS-430a.2

8%

6%

6%

0.3%

%

Rate of non-conformance subject to corrective action

CG-TS-430a.2

100%

100%

100%

100%

%

Direct suppliers priority non-conformance rate

CG-TS-430a.2

4%

6%

6%

0.3%

%

Direct suppliers associated corrective action rate for priority non-conformance

CG-TS-430a.2

100%

100%

100%

99%

%

Number of contracts with suppliers that were terminated as a result of non-conformance

CG-TS-430a.2

7

5

2

3

Engagement survey response rate

66%

87%

89%

88%

%

Employee engagement percentage

77%

72%

73%

77%

%

Manager effectiveness

74%

79%

83%

83%

%

Number of employees

1,673

1,983

2,267

2,280

numberNumber of new hires

428

611

620

515

numberTurnover

18%

11%

14%

12%

%

Female

52%

53%

51%

50%

%

Male

48%

47%

47%

50%

%

number of contracts terminatedEmployees

Overall gender ratio

40

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESMetric

2019

2020

2021

2022

Unit of Measure

Female

13%

20%

17%

17%

%

Male

87%

80%

83%

83%

%

Female, <30 years old

–

56%

40%

50%

%

Male, <30 years old

–

33%

60%

50%

%

Female, 30-50 years old

–

49%

50%

51%

%

Male, 30-50 years old

–

50%

49%

48%

%

Female, >50 years old

–

26%

29%

29%

%

Male, >50 years old

–

74%

69%

69%

%

Total Female

47%

47%

47%

47%

%

Total Male

53%

52%

52%

50%

%

Female, <30 years old

–

33%

0%

0%

%

Male, <30 years old

–

33%

100%

100%

%

Female, 30-50 years old

–

44%

42%

42%

%

Male, 30-50 years old

–

56%

57%

57%

%

Female, >50 years old

–

36%

36%

32%

%

Male, >50 years old

–

64%

64%

67%

%

Total Female

–

41%

39%

38%

%

Total Male

–

58%

60%

60%

%

Deaths0000number of deaths

Recordable workplace accidents

24

10

8

9

number of recordable workplace
accidents

Employees
Board level

Manager

Directors and above

41

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESMetric

2019

2020

2021

2022

Unit of Measure

Donations made (in-kind)

102,694

460,444

170,000

450,000

number of items

Donations made (cash)$978,000$896,744$1,950,000$3,010,000

Number of offices participating in Global Season of Giving

11

3

14

15

Employee volunteer hours

–

–

–

5,000

83

84

87

77

66%

67%

69%

83%

Corrugate

41

43

44

37

million lbs

Clay Coated News Back (CCNB)

31

32

34

32

million lbs

Polyethylene terephthalate (PET)

5.8

5.9

6.2

5.4

million lbs

Plastic – other

2.3

2.6

2.7

2.4

million lbs

Misc. – other

0.6

0.9

0.3

0.2

million lbs

173,952

49,58458,358.7

62,079.5

tons CO2e

Scope 1

2,565.8

4,438.9

3,837.3

613.2

tons CO2e

Scope 22,000.2

1,016.0

1,190.4

1,222.3

tons CO2e

Scope 3

169,386

44,12953,33160,244

tons CO2e

Per unit of sales

110.0

31.6

28.6

31.4

CO2e/$ million sales

Waste generated

773

1,566

1,048

789

tonnesWaste diverted

–

22%

19%

42%

%

Community$USD
number of offices
hours

Environment
Packaging material
Retail packaging cube utilization

million lbs%

Packaging material type

Total carbon emissions

42

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESUN Sustainable Development Goals

4. Quality Education
Ensure inclusive and equitable
quality education and promote
lifelong learning opportunities for all
P R O G R A M S / I N I T I AT I V E S

Toy Movement/CFS Play Kits
Initiative
See Spreading Joy Globally section

Future of Play Scholarship Program
See Fostering Inclusivity in Our Industry
sectionInvention Convention

8. Decent Work andEconomic Growth
Promote sustained, inclusive andsustainable economic growth, fulland productive employment anddecent work for all

12. Responsible
Consumption and
Production
Ensure sustainable consumption
and production patterns
P R O G R A M S / I N I T I AT I V E S

P R O G R A M S / I N I T I AT I V E S

TerraCycle®

Labour Practice Standards through
IETP
See Responsible Sourcing section

See Family-Friendly Spaces Program section

See Future of Play section

Protect, restore and promotesustainable use of terrestrial
ecosystems, sustainably manage
forests, combat desertification, andhalt and reverse land degradationand halt biodiversity loss
P R O G R A M S / I N I T I AT I V E S

See Waste section

Climate Action Plan

How2Recycle

See Our Climate Action Commitment section

See Waste section

Family-Friendly Spaces Support

15. Life on Land

Panama Tropical Reforestation
Project

Panama Tropical Reforestation
Project
See Our Performance section

See Our Performance section

Boys & Girls Clubs of America
Partnership
See Future of Play section

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INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESTask Force on Climate-Related Financial Disclosures
2022 TCFD Recommendations
Governancea) Describe the board's oversight of climaterelated risks and opportunities.

The Governance & Nominating Committee has oversight for the Company's strategy, performance and reporting on CSR issues, which includes climate change.

b) Describe Management's role in assessing
and managing climate-related risks andopportunities.

The Executive CSR Governance Committee, formed in 2022, is our executive management committee which oversees the management and measurement of our CSR plans and targets.
It meets quarterly to review progress against our CSR plan, including on climate, and it evaluates emerging risks and opportunities.

See the CSR Governance section for more information.

We also have a cross-functional CSR committee which is responsible for execution against CSR targets including climate change. It also reviews performance, makes recommendations for
activities and initiatives, and flags emerging issues. The cross-functional CSR Committee contains leads from across the business.
See the CSR Governance section for more information.

Strategya) Describe the climate-related risks andopportunities the organization has identified
over the short, medium and long term.

Climate change presents Spin Master with a number of risks and opportunities. We define short term as within one year, medium term within one to five years and long term as over five years.
Transition Risks
Policy and legal risks: As more countries set and execute their climate targets, this could affect the reliability and/or cost of our manufacturing. For example, rolling blackouts in provinces
in China to meet climate targets may cause a reduction in manufacturing capacity. Similarly, as costs and taxes are imposed on fossil fuels, which are the inputs for resin, a key product andpackaging material, this will in turn increase the cost of production. We also think that there will be increased requirements for us for extended producer responsibility obligations for packaging
and product materials. These are short- and medium-term risks that would lead to cost increases.
Market (transition) risks: As climate change worsens, there are likely to be more disruptions to manufacturing and distribution over the short, medium and long term. As a result, supply chains
will need to be diversified. In addition, disruptions may increase the cost of inputs over the short, medium and long term (as discussed above). Lastly, climate change may affect how products
are consumed. For example, millennial and Gen Z parents are looking for more eco-friendly toys for their children. We have created products made with more sustainable materials such as the
Rubik’s Re-cube. Another example: during the pandemic, when supply chains were challenged, some parents turned to digital forms of entertainment for their children, which were available on
demand. We see this as a strong opportunity given our increasing presence in digital games and entertainment.
Physical Risks
Acute: The effect of extreme weather events could affect the quality of our products and our ability to distribute them in a timely fashion. For example, monsoons in South, Southeast and East
Asia can cause excessive moisture, which can affect or damage products and product packaging, leading to write-offs, transport delays, and affect our ability to deliver on our retail customers’
quality needs.

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2022 TCFD Recommendations
Chronic: There are also certain areas, for example the Pearl River Delta in southern China, which are major areas for toy manufacturing, but are also subject to severe flood threats fromwatershed floods, sea level rise and storm surges. This is a reason why we have been continuing to diversify our manufacturing base.
Increased heat could cause working conditions to deteriorate for those employed in physical labour in our supply chains. Increased heat has also led to blackouts and brownouts in certain partsof the world, which would also impact the ability of our employees and supply chain to be productive or to access our systems. Droughts or inadequate water supply in areas of the world that
rely on nuclear energy could make it difficult to safely operate reactors. Similarly, in areas where we may be powered by hydroelectric energy, in Canada or in certain parts of China – inadequate
water supply would lead to a lack of energy production. This could be a risk in the medium and long term.
Opportunities
While there are many risks with climate change, we believe there are a number of opportunities that Spin Master can benefit from.
Resource efficiency: As materials become more expensive, we believe that we can be more efficient in our use of materials, particularly pulp and paper and plastic. For example, in using
injection moulding techniques, we are able to use less plastic in the creation of action figures, and we have been able to reuse virgin plastic waste materials at our manufacturing facility inCalais. We believe that this has short-, medium- and long-term horizons.
New product innovation: With the interest in sustainability front of mind for Gen Z and millennial parents, we have used this as a way to determine product lines that would be relevant to thesefamilies. Additionally, with many of our retail customers interested in reducing their Scope 3 emissions and also offering more sustainable products, we believe that continued work in this area
will position us well. We believe that this also has short-, medium- and long-term time horizons.
Creating more resilient operations and footprint: Toys are a trend-driven industry, and supply chains rely on flexibility to adjust quickly. In the past year, we have sold our Tarboro facility andhave continued to move towards a model that relies more on third parties and outsourcing. We believe that this diversification of manufacturing spreads out our risk and allows us to be more
resilient should certain facilities be affected by climate change. Shifts to renewable energy will support resilience for individual sites. These will have effects over medium- and long-term horizons.
b) Describe the impact of climate-relatedrisks and opportunities on the organization’s
businesses, strategy, and financial planning.

In terms of the impact of climate-related risks and opportunities on our businesses, strategy and financial planning, there are several actions we have taken to date:• Diversifying our manufacturing base: Recognizing that climate change affects different regions of the world disproportionately, we have geographically diversified our production to thirdparty manufacturers, and in particular, are moving certain facilities closer to market so as to lessen reliance on long-distance transport and improve speed to market.
• Products and services: We have set goals to reduce plastic use in our packaging, and have been increasingly creating more sustainably minded product lines, made with more sustainableproduct materials, in order to adapt to changing market demands and to experiment with substitutes. At the moment, there are not many scalable, non-fossil fuel based resins that match thesafety and quality profile required by regulations.
• Supply chain: Given the various supply chain disruptions from the pandemic and natural disasters, we have built in redundancy within our supply chain in order to be able to deliver to ourcustomers on time. This was something we began during the pandemic and will continue to use.
• Operations: Given that our operations are fairly low impact, we recognize that we have a responsibility to ensure that we use as few resources as possible. We have created criteria for ourfacilities team to prioritize siting of new offices in locations that source renewable energy or feature green attributes.
We worked with a third-party consultant to assess our Scope 1 and 2 emissions reductions given our 2030 and 2050 goals and our planned actions. For Scope 3, we modelled three separate
scenarios to reduce emissions – continuing with our planned actions (given existing efforts for grid decarbonization), engaging suppliers and increasing our own actions conservatively and,lastly, engaging suppliers and doubling efforts within our control. We also conducted a stress test to maximize emissions reductions without eroding shareholder value. We are still determining
a feasible plan before setting our targets for Scope 3.

45Spin Master 2022 Corporate Social Responsibility Report

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2022 TCFD Recommendationsc) Describe the resilience of theorganization’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or lower scenario.

In 2022, we commissioned a third-party consultant to assess our Scope 1 and 2 targets against a net-zero pathway for 2050, considering our projected growth trajectory. We have discussed
our strategies and climate risks and opportunities in previous sections.

Risk Managementa) Describe the organization’s processes for
identifying and assessing climate-relatedrisks.

Spin Master manages climate change risks as part of our broader Enterprise Risk Management (ERM) program. Our ERM Committee includes cross-functional membership from within the
Company, including members of the CSR Committee, that identify, assess and create action plans to mitigate risks. We regularly monitor existing and emerging regulations related to climatechange, and assess relevance to our business.
The Audit Committee reviews risks identified within our organization and ensures that an effective risk management control framework has been designed, implemented and tested by ourmanagement. Our Governance & Nominating Committee of the Board of Directors has oversight of our CSR plan, which includes climate change-related concerns and integrates risks identified
and mitigated.
To assess the size and scope of risks, including climate-related risks, we look at financial, reputational (in the public, investors, customers, board and employees), regulatory, competitiveness(pricing, quality and raw material sourcing) and employee safety-related attributes.

b) Describe the organization’s processes for
managing climate-related risks.

We have defined in Risk Management how we define the materiality of specific risks. How we decide to mitigate, transfer, accept or control risks is based on the severity of identified risks.

c) Describe how processes for identifying,assessing, and managing climate-relatedrisks are integrated into the organization’s
overall risk management.

Our Enterprise Risk Management process includes engaging stakeholders from across the organization to understand specific risks; for climate in particular, this is owned by our CSR team.
We assess each risk for impact (financial, reputational, regulatory, competitiveness and safety) and probability and rank the issues, and then determine a risk appetite for each issue. We thenlook at existing strategies in place to mitigate risk, to move from inherent to residual risk, and then assess planned or recommended future strategies to bring residual risk to the target levelof acceptable risk. To date, due to our low direct emissions, our climate-related risks were focused on mitigating reputational risk through the use of offsets and renewable energy certificates.
However, with a deeper dive into our carbon footprint, and with a new carbon mitigation plan, this sets the foundation for reducing our operational emissions. We also plan to investigate further
action for Scope 3 emissions.
We have been monitoring changes in policy regularly as it relates to pricing of GHG emissions and emissions-reporting obligations, and litigation in other sectors – however, as an industry thatis not inherently high-carbon, we do not believe that these will have a material effect on us in the short term. Over time, we do expect that there may be some increased input costs for resin –for products and packaging, and stewardship fees related to product takeback and recycling. However, to date, these fees have not been heavily focused on toys, as product turnover is not as
fast as other high-consumption sectors (e.g., food.)
For climate-related supply chain risk, some of the activities we undertook during the COVID pandemic to build resilience would also be applicable to natural disasters from climate change. For
example, broadening our supplier base and determining other forms of transport and alternate ports to ensure that our products reach customers. We believe that these resilience measures will
enable us to manage climate-related disruptions to the supply chain.
In the future, we will need to more systematically plan for climate adaptation by looking at our top suppliers and their locations, to determine the type of physical risk that they might face, as
well as working with the industry to help reduce climate impacts.

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2022 TCFD Recommendations
Metrics and Targets

47a) Disclose the metrics used by theorganization to assess climate-related risks
and opportunities in line with its strategy
and risk management process.

We currently disclose Scope 1 (owned vehicles), Scope 2 (purchased electricity) and Scope 3 (air travel, purchased goods and services (emissions associated with Tier 1 suppliers), fuel andenergy-related activities, waste generated in operations, business travel and downstream transport and distribution).

b) Disclose Scope 1, Scope 2, and if
appropriate, Scope 3 greenhouse gas (GHG)
emissions, and the related risks.

See the Our Environment section for more details on our Scope 1, 2 and 3 greenhouse gas emissions.

c) Describe the targets used by theorganization to manage climate-relatedrisks and opportunities and performanceagainst targets.

In 2022, we set carbon reduction targets for 2030 and 2050. We aim to reduce Scope 1 and 2 emissions by 70% by 2030, and we aim to reduce our Scope 1 and 2 emissions by over 90% by
2050. The remainder, accounting for 5-10%, represents a very limited amount of residual emissions that we would neutralize with high-quality carbon removals. We plan on doing this bytransitioning to electric vehicles, upgrading our leased building standards, reducing owned manufacturing and enhancing energy efficiency in offices. For the remainder, we plan on sourcing
regionally targeted renewable energy certificates. These targets are absolute and the base year we are using is 2019.

We have provided information on risks in preceding sections.

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESGRI Context Index
Global Reporting Initiative (GRI) provides a comprehensive framework for corporate sustainability reporting based on input from a wide range of stakeholders.
The 2022 CSR Report was prepared in accordance with the GRI Universal Standards 2021. We provide the GRI Content Index below to reference our GRI reporting.

GENERAL DISCLOSURESGRI Standard
GRI 2: General Disclosures
2021

2-1

Disclosure

Location of information

Organizational details

About Spin Master

Explanation

Management Information Circular (Intercorporate
Relationships)
2-2

Entities included in the organization’s sustainability reporting

About Spin Master
Management Information Circular (Intercorporate
Relationships)

2-3

Reporting period, frequency and contact point

About This Report2-4

Restatements of information

About This Report

2-5

External assurance

About This Report

2-6

Activities, value chain and other business relationships

About Spin Master
Responsible Sourcing

2-7

Spin Master Global Offices

Employees

Our People
Learning and Development
Our Diversity Representation
2-8

Spin Master Global Offices

Workers who are not employees

On top of our full-time employees, Spin Master had
143 temporary and contract workers as of December 31, 2022.

Our People
Learning and Development
Our Diversity Representation
2-9

Management Information Circular (Corporate Governance)

Governance structure and composition

CSR GovernanceCorporate Governance (website)
2-10

Nomination and selection of the highest governance bodyManagement Information Circular (Corporate Governance –Nomination and Election of Directors)
Governance and Nominating Committee Charter

2-11

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Chair of the highest governance bodySpin Master 2022 Corporate Social Responsibility Report

INTRODUCTION

Position Description of Chair of the Board

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESGENERAL DISCLOSURESGRI Standard
2-12

Disclosure

Location of informationRole of the highest governance body in overseeing themanagement of impacts

CSR Governance

Explanation

Governance and Nominating Committee Charter
Audit Committee Charter
Board of Directors Mandate
Management Information Circular (Board Mandate –Appendix A)

2-13

Delegation of responsibility for managing impacts

CSR Governance

2-14

Role of the highest governance body in sustainability reporting

CSR Governance
Governance and Nominating Committee Charter2-15

Code of Ethics and Business Conduct

Conflicts of interest

Management Information Circular (Interlocking
Directorships, Principal Holders of Voting Shares, Interest ofInformed Persons in Material Transactions)
Annual Report (Related Party Transactions)

Guidance to avoid conflicts of interest are detailed in the Code of
Ethics and Business Conduct.
No board members have cross-board membership (interlocking
directorships) – if there was, it would be disclosed in theManagement Information Circular.
The Company does not track cross-shareholding with suppliers.
Controlling shareholders are Ronnen Harary, Anton Rabie and
Ben Varadi.
We have disclosed related party transactions with one of ourdirectors, Jeffrey I. Cohen, who is the Managing Partner at Torkin
Manes LLP, which provides legal services to the Company.

2-16

Management Information Circular (Corporate Governance –Shareholder Engagement)

Communication of critical concerns

Nature and total number of critical concerns cannot be reported
upon due to confidentiality constraints.

Whistleblowing Policy
2-17

CSR GovernanceCollective knowledge of the highest governance bodyManagement Information Circular (Nomination and Electionof Directors)

49

2-18

Evaluation of the performance of the highest governance bodyManagement Information Circular (Assessments)

2-19

Remuneration policies

Management Information Circular (Director Compensation,
Executive Compensation)

2-20

Process to determine remuneration

Management Information Circular (Director Compensation,
Executive Compensation – Compensation Discussion &Analysis & 2021 Advisory Vote on Approach to Executive
Compensation)

2-21

Annual total compensation ratio

Management Information Circular (Components ofCompensation & Cost of Management Ratio)

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLE

The VP, Communications and Corporate Citizenship, andmembers of the CSR Committee provide regular updates to
the Governance & Nominating Committee and Executive CSR
Governance Committee on CSR matters.

Annual total compensation ratio cannot be reported upon due toconfidentiality constraints.

OUR COMMUNITIESREPORTING AND DISCLOSURESGENERAL DISCLOSURESGRI Standard

Disclosure

Location of information

2-22

Statement on sustainable development strategy

Letter from the Global President & CEO

2-23

Policy commitments

CSR Governance

Explanation

Product Safety and Quality
About Spin Master
Governance and Ethics
2-24

Human Rights Policy

Embedding policy commitments

Code of Ethics and Business Conduct
Code of Conduct for Suppliers and Manufacturers
2-25

Processes to remediate negative impacts

Human Rights Policy

2-26

Mechanisms for seeking advice and raising concerns

Governance and Ethics
Corporate Governance (website)
Code of Ethics and Business Conduct

2-27

Compliance with laws and regulations

The Company has not identified any non-compliance with laws
and/or regulations. The Company has also not identified any noncompliance with environmental laws and/or regulations.

2-28

Membership associations

Stakeholder Engagement

2-29

Approach to stakeholder engagement

Stakeholder Engagement

2-30

Collective bargaining agreements

Human Rights Policy

Less than 1% of Spin Master employees are covered by acollective bargaining agreement.

Disclosure

Location of information

Explanation

3-1

Process to determine material topics

Materiality Analysis

3-2

List of material topics

Materiality Analysis

GRI 3: Material Topics 2021

3-3Management of material topics

Annual Report

GRI 201: Economic
Performance 2016

201-1

Direct economic value generated and distributed

Annual Report

201-2

Financial implications and other risks and opportunities due
to climate change

Task Force on Climate-Related Financial Disclosures

MATERIAL TOPICSGRI Standard
GRI 3: Material Topics 2021

Economic performance

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Disclosure

Location of information

Explanation

201-3

Defined benefit plan obligations and other retirement plans

Management Information Circular (Components ofCompensation)

201-4

Financial assistance received from government

Annual Report

GRI 3: Material Topics 2021

3-3Management of material topics

Anti-Bribery and Anti-Corruption Policy

GRI 205: Anti-corruption
2016

205-1

Operations assessed for risks related to corruption

Anti-Bribery and Anti-Corruption Policy

All of our employees must annually review, understand and attest
to compliance with our Anti-Bribery and Anti-Corruption Policy.

205-2

Communication and training about anti-corruption policies
and procedures

Anti-Bribery and Anti-Corruption Policy

All of our employees must annually review, understand and attest
to compliance with our Anti-Bribery and Anti-Corruption Policy.

205-3

Confirmed incidents of corruption and actions taken

Anti-Bribery and Anti-Corruption Policy

There were no confirmed incidents of corruption in 2022.

Spin Master has access to government programs, including
tax credits that are designed to aid in the film and television
production and distribution in Canada. See our Annual Reportfor more details.

Anti-corruption

Anti-competitive behavior			
GRI 3: Material Topics 2021

3-3

Anti-Bribery and Anti-Corruption Policy

Management of material topics

Code of Ethics and Business Conduct
GRI 206: Anti-competitive
Behavior 2016

206-1

Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

There were no legal actions for anti-competitive behaviour,
anti-trust and monopoly practices in 2022.

Materials					GRI 3: Material Topics 2021

3-3Management of material topics

Our Products

GRI 301: Materials 2016

301-1

Materials used by weight or volume

Performance Data

301-2

Recycled input materials used

Playsponsible – Responsible Product Design

We are integrating recycled materials into some of our products
but do not currently track exact volumes.

301-3

Reclaimed products and their packaging materials

Waste

We operate a takeback program for product and packaging
through TerraCycle® in the United States.

GRI 3: Material Topics 2021

3-3Management of material topics

Our Performance

GRI 302: Energy 2016

302-1

Energy consumption within the organization

Our Performance

Energy			Performance Data

51

302-3

Energy intensity

Performance Data

302-4

Reduction of energy consumption

Our Performance

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTIONOUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESMATERIAL TOPICSGRI Standard
302-5

Disclosure

Location of information

Explanation

Reductions in energy requirements of products and services

N/A

Spin Master’s products are not energy intensive in their use,so this indicator is not currently reported.

Management of material topics

Our Performance

Emissions			
GRI 3: Material Topics 2021

3-3

Our Climate Action Commitment
GRI 305: Emissions 2016

305-1

Our Performance

Direct (Scope 1) GHG emissions

Our Climate Action Commitment
Performance Data
305-2

Our Performance

Energy indirect (Scope 2) GHG emissions

Our Climate Action Commitment
Performance Data
305-3

Our Performance

Other indirect (Scope 3) GHG emissions

Our Climate Action Commitment
Performance Data
305-4

GHG emissions intensity

Performance Data

305-5

Reduction of GHG emissions

Our Performance
Our Climate Action Commitment

Waste			GRI 3: Material Topics 2021

3-3Management of material topics

Waste

GRI 306: Waste 2020

306-1

Waste generation and significant waste-related impacts

Waste

306-2

Management of significant waste-related impacts

Waste
Sustainable Packaging

306-3

Waste

Waste generated

Performance Data
306-4

Waste

Waste diverted from disposal

Performance Data
306-5

Waste

Waste directed to disposal

Performance Data

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Disclosure

Location of information

Explanation

Supplier environmental assessment			
GRI 3: Material Topics 2021

3-3Management of material topics

Responsible Sourcing

GRI 308: Supplier
Environmental Assessment
2016

308-1

New suppliers that were screened using environmental criteria

Code of Conduct for Suppliers and Manufacturers
Responsible Sourcing

308-2

Negative environmental impacts in the supply chain and actions
taken

Responsible Sourcing
Performance Data

GRI 3: Material Topics 2021

3-3Management of material topics

Our People

GRI 401: Employment 2016

401-1

New employee hires and employee turnover

Learning and Development

All suppliers, including new suppliers, are screened forenvironmental compliance.

Employment			

Performance Data
401-2

Benefits provided to full-time employees that are not provided
to temporary or part-time employees

Compensation and Benefits

401-3

Parental leave

Compensation and Benefits

Occupational health and safety			
GRI 403: Occupational Healthand Safety 2018403-1

Occupational health and safety management system

Health and Safety

403-4

Worker participation, consultation, and communication on
occupational health and safety

Health and Safety

403-5

Worker training on occupational health and safety

Health and Safety

403-9

Work-related injuries

Health and Safety

3-3Management of material topics

Learning and Development

404-2

Programs for upgrading employee skills and transition
assistance programs

Learning and Development

Training and education			GRI 3: Material Topics 2021

We require managers to conduct two performance reviews a year
for all full-time employees.

Diversity and equal opportunity			
GRI 3: Material Topics 2021

3-3Management of material topics

Equity, Diversity and Inclusion

GRI 405: Diversity and Equal
Opportunity 2016405-1

Diversity of governance bodies and employees

Our Diversity Representation
Performance Data

405-2

53

Ratio of basic salary and remuneration of women to men

Spin Master 2022 Corporate Social Responsibility Report

INTRODUCTION

Our People

OUR ENVIRONMENTOUR PRODUCTSOUR PEOPLEOUR COMMUNITIESREPORTING AND DISCLOSURESMATERIAL TOPICSGRI Standard

Disclosure

Location of information

Explanation

Freedom of association and collective bargaining			
GRI 3: Material Topics 2021

3-3

Human Rights Policy

Management of material topics

Code of Conduct for Suppliers and Manufacturers
Responsible Sourcing

Child labor			
GRI 3: Material Topics 2021

3-3

Responsible Sourcing

Management of material topics

Statement on Modern Slavery and Transparency in Supply
ChainsCode of Conduct for Suppliers and Manufacturers
GRI 408: Child Labor 2016

408-1

Operations and suppliers at significant risk for incidents of childlabor

Responsible Sourcing
Statement on Modern Slavery and Transparency in Supply
ChainsWe have extensive auditing and monitoring programs in place toidentify and mitigate risk.

Code of Conduct for Suppliers and Manufacturers

Forced or compulsory labor			
GRI 3: Material Topics 2021

3-3

Responsible Sourcing

Management of material topics

Statement on Modern Slavery and Transparency in Supply
ChainsCode of Conduct for Suppliers and Manufacturers
GRI 409: Forced orCompulsory Labor 2016409-1

Operations and suppliers at significant risk for incidents offorced or compulsory labor

Responsible Sourcing
Statement on Modern Slavery and Transparency in Supply
ChainsWe have extensive auditing and monitoring programs in place toidentify and mitigate risk.

Code of Conduct for Suppliers and Manufacturers

Local communities			
GRI 3: Material Topics 2021

3-3Management of material topics

Our Communities

GRI 413: Local Communities
2016

413-1

Operations with local community engagement, impact
assessments, and development programs

Our Communities

Supplier social assessment			
GRI 3: Material Topics 2021

3-3Management of material topics

Responsible Sourcing

GRI 414: Supplier Social
Assessment 2016414-1

New suppliers that were screened using social criteria

Code of Conduct for Suppliers and Manufacturers

414-2

Negative social impacts in the supply chain and actions taken

Responsible Sourcing

All suppliers, including new suppliers, are screened usingsocial criteria.

Performance Data

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Disclosure

Location of information

Explanation

Public policy			GRI 3: Material Topics 2021

3-3Management of material topics

Stakeholder Engagement

GRI 415: Public Policy 2016

415-1

Political contributions

Anti-Bribery and Anti-Corruption Policy

Spin Master does not make any political contributions.

Customer health and safety				GRI 3: Material Topics 2021

3-3

GRI 416: Customer Health and 416-1
Safety 2016416-2

Management of material topics

Product Safety and Quality

Assessment of the health and safety impacts of product andservice categories

Product Safety and Quality

Incidents of non-compliance concerning the health and safety
impacts of products and services

Product Safety and Quality

Marketing and labeling					GRI 3: Material Topics 2021

3-3Management of material topics

Responsible Marketing and Content for Children

GRI 417: Marketing andLabeling 2016

417-1

Requirements for product and service information and labelingResponsible Marketing and Content for Children

417-2

Incidents of non-compliance concerning product and service
information and labelingResponsible Marketing and Content for Children

We had zero incidents of non-compliance concerning productand service information and labelling.

417-3

Incidents of non-compliance concerning marketing
communications

Responsible Marketing and Content for Children

We had zero incidents of non-compliance concerning marketing
communications.

Customer privacy						GRI 3: Material Topics 2021

3-3Management of material topics

Data Protection and Cybersecurity

GRI 418: Customer Privacy
2016

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

Data Protection and Cybersecurity

Additional notes:
Information related to GRI 207 (Tax) is currently included in our Annual Report.
GRI 302-2, GRI 303, GRI 304 and GRI 413-2 are not currently material to Spin Master.
GRI 204, GRI 410 and GRI 411 are not relevant to Spin Master.
GRI 202, GRI 203, GRI 403-2, 403-3, 403-6, 403-7, 403-8, 403-10 and GRI 404-1 are not currently tracked.
GRI 406-1 is currently confidential information.

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spinmaster.com

Certain statements, other than statements of historical fact, contained in thisdocument are forward-looking statements based on expectations, estimates andprojections as of the date on which the statements are made in this document. The
words “plans”, “expects”, “projected”, “estimated”, “anticipates”, “indicative”, “intend”,“potential”, “prospects”, “seek”, “strategy”, “targets” or “believes”, or variations of suchwords and phrases or statements that certain future conditions, actions, events or
results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions
thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions,
identify forward-looking statements. Forward-looking statements include, without
limitation, statements with respect to the Company’s environmental and climatechange goals and targets.
Forward-looking statements are necessarily based upon management’s perceptionsof historical trends, current conditions and expected future developments, as well as
a number of specific factors and assumptions that, while considered reasonable bymanagement as of the date on which the statements are made in this document, areinherently subject to significant business, economic and competitive uncertainties
and contingencies which could result in the forward-looking statements ultimately
being incorrect.
By its nature, this information is subject to inherent risks and uncertainties that may begeneral or specific and which give rise to the possibility that expectations, forecasts,
predictions, projections or conclusions will not prove to be accurate, that assumptions
may not be correct and that objectives, strategic goals and priorities will not be
achieved. Known and unknown risk factors, many of which are beyond the controlof the Company, could cause actual results to differ materially from the forwardlooking statements. Such risks and uncertainties include, among others, the factors
discussed in the Company’s disclosure materials, including its most recent annual
and any subsequent interim Management Discussion & Analysis and its most recent
Annual Information Form, filed with the securities regulatory authorities in Canada andavailable under the Company’s profile on SEDAR.
There can be no assurance that forward-looking statements will prove to be accurate,
as actual results and future events could differ materially from those anticipatedin such statements. Forward-looking statements are provided for the purpose ofproviding information about management’s expectations and plans relating to the
future. These forward-looking statements are made as of April 5, 2023 and theCompany disclaims any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events or otherwise, or to
explain any material difference between subsequent actual events and such forwardlooking statements, except to the extent required by applicable law.

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