Sustainability
Impact Report
2022

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Contents
Message from our co-founder
4-5

About Spiber
6-11

Our sustainability strategy
12-14

Impact
15-20

Innovation
21-31

Integrity
32-43

Appendix
44-50

3About this report
Welcome to Spiber’s first sustainability impact
report. Data contained within this report covers
our activities throughout the 2021 calendar
year unless otherwise noted, with some
activities covered up to June 2022, including
those undertaken at our headquarters and R&D
facilities in Japan, at our polymer production
facility in Thailand, and through our strategic
partnership in the USA. We are working towards
aligning with the Global Reporting Initiative(GRI) and plan to report in accordance with GRI
in our future reports.
Any comments or questions about oursustainability approach and reporting should
be directed to our inquiry form:
https://spiber.inc/en/contact/

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Appendix

Message from
our Co-founderProtein materials to leadthe transformation toward a
circular economy
Spiber aims to contribute to the global
transformation toward a more circular
economy through innovative protein-basedmaterial solutions.
It has been reported that humanity
consumes more than 100 billion tonnesof material per year, of which a mere 8.6%
ends up being recycled, and that shifting
to a circular economy could allow for a 39%
reduction in global greenhouse gas (GHG)
emissions.1
Conventional solutions for recycling
usually require items to be separated orsorted by material type before they canbe broken down, processed and reused.
However, many products that are being
manufactured today are designed using
combinations of multiple types of materials
that cannot easily be separated. For
example, many fabrics used in garments are
made by blending polyester and cotton, or¹Circularity Gap Reporting Initiative, Circularity Gap Report 2021

wool and nylon, etc. Even t-shirts made of
100% cotton fabric often still use polyester
for sewing threads, tags, and polyurethanearound the neck. Such product designs leadto an abundance of items that cannot easily
be recycled, which end up being disposedof through combustion or in landfills.
Items in the natural and biological world
are very different from this. In a natural
ecosystem, there is no such thing as waste
because all living things are based on thesame universal building blocks and aredesigned to circulate within the ecosystemof the biosphere. In this miraculous,
massive system, protein materials play acore role. Harnessing protein materials foruse in industrial applications represents
an important step forward for advancing
circularity. We believe Spiber has animportant role to play in the development
and advancement of a next-generation,
protein-based industrial ecosystem.

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Sustainability

ImpactInnovation

Contribute to sustainablehuman well-being
Spiber’s goal is to help create a sustainable
society in which each and every person isrespected, cared for, and has the chance toexperience both happiness and fulfillment.
In other words, our purpose is to contributeto the sustainable well-being of humanity.
If we believe there is something importantfor us to do toward that end, we are willing to
do our best to achieve it, whether the scope
be global or local, and whatever be the typesof resources that may be demanded. We are
extremely proud of the consistent dedication
our team has shown to this goal since theinception of our company.

Integrity

Appendix

Every one of Spiber’s business initiatives
have been driven by this goal. By creating
environmentally friendly materials andhelping the world transition toward a morecircular economy, we see Spiber playing animportant role in enhancing the sustainable
well-being of humanity.
True well-being for all means nothing lessthan achieving world peace. While this seems
like an impossible goal, we neverthelesshave faith that humanity may one day see its
accomplishment. Much as we draw inspirationand courage from the achievements of those
who have walked the long road of history
before us, we at Spiber resolve to continue
our unceasing efforts to serve as a bridge
between the world of today and a brighter
future for those who will share our planet
after us.
To all the stakeholders who continue to makethe pursuit of our mission a possibility,
I offer my sincerest thanks.
Kazuhide Sekiyama
Spiber Co-founder and Representative
Executive Officer

Every one of Spiber’s business initiatives

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About Spiber

Appendix

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About Spiber Inc.
Established in September 2007, Spiber Inc. is a biotechnology start-up
headquartered in Tsuruoka, Japan that is driven by the purpose of its
existence: to contribute to sustainable human well-being. Spiber strives
to provide solutions for our society to shift toward a circular economy byutilizing cutting-edge synthetic biology, polymer science, and materialscience for the development of novel protein materials known as‘Brewed Protein™’.

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Brewed Protein materials are the protein
fibers, films, and other types of polymer
materials manufactured using Spiber’s
proprietary fermentation (brewing) process.
Made from plant-derived sugars as primary
raw ingredients, Brewed Protein materials
offer a solution to address increasing
market demand for animal-free, plasticfree alternatives to conventional materials.
Spiber has developed a proprietary
technology platform that enables it toiteratively optimize the design of its
materials at the molecular level. Theirunique, customizable nature allows theproperties and functionalities of Brewed
Protein materials to be tailored to suitthe needs of a wide range of applications
across various industries. Spiber is now on
the brink of scaling production. Our firstcommercial-scale fermentation plant inThailand began production in 2022, andIntegrity

Appendix

Brewed Protein fiber production using
polymers produced in the USA is scheduled
to begin in the near future. Both theThailand and USA polymer production
plants are strategically located close toagricultural cropland for our key feedstocks(sugarcane in Thailand and corn in theUSA) and will be ramping up their scale ofproduction over the coming years.
With our initial focus on fibers for theapparel and textile industry, downstream
processing of polymers into fibers will takeplace at our spinning facility in Tsuruoka
and other existing spinning factories owned
and operated by third parties. Additionally,
we are in pursuit of opportunities to apply
our technology platform and various typesof Brewed Protein materials as solutionsin other markets, including mobility, food,cosmetics, packaging, and pharmaceuticals.

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Appendix

Spiber in brief
Headquarters:
Yamagata, Japan
Number of employees²:
Spiber Inc: 257

Spiber (Thailand) Ltd: 35

Female 115 (45%)

Female 16 (46%)

2004

2007

2015

Spiber’s journeybegan when 2
passionate individuals
started to explore
how spider silk
could transform
industries..

Spiber Inc. founded.

Unveiled theprototype MOON
PARKA, an outdoor
jacket developed incollaboration withGOLDWIN INC.

Male 142 (55%)

Male 19 (54%)

Permanent 248 (96%)

Permanent 34 (97%)

2020

2019

2018

Global (total): 298

Spiber America
LLC established in the
USA to pursue apartnership with ADM
for further scaling.

First apparelproducts using
Brewed Protein™
fibers (Planetary
Equilibrium Tee and
MOON PARKA) aresold to the public.

Spiber (Thailand)Ltd. established in
preparation tobuild the firstcommercial scale
production facility.

Contract 9 (4%)

Spiber America LLC: 6
Female 2 (33%)
Male 4 (67%)

Contract 0 (0%)

Contract 1 (3%)

Permanent 6 (100%)

2022

2

As of December 31st, 2022

Began Brewed
Protein™ fiber
production using
polymers producedin Thailand.

Near
FutureAiming to
begin operation ofpolymer production
plant in the USA.

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VISION, MISSION, AND VALUES
Spiber was founded on a mission: to contributeto sustainable human well-being. Put anotherway, our ultimate aim is to help create
sustainable happiness for all humanity. To thisend, we strive to provide solutions to the globalscale issues currently threatening society—suchas the climate crisis, resource depletion andenvironmental pollution—through our businessactivities.
As humanity builds a more sustainable society,
we are forced to reckon with an undeniable fact:
we currently have extremely limited options
for closed-loop materials that are derived fromrenewable feedstocks and are biodegradable.
Brewed Protein™ materials are a disruptive,
revolutionary solution created through microbial
fermentation. These materials are a compelling
new option for designers and creators looking tosupport a brighter, more sustainable future. This
ambition to sustainable transformation was built
into our company from the start.

Integrity

Appendix

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Appendix

The Spiber vision

GOAL

Goal: Contribute to sustainable human well-being
Our ultimate goal is to contribute to sustainable human well-being. Spiber
aims to achieve this through long-term thinking and conducting business inthe best interest of society.

MISSION

Mission: Find true solutions to latent and significant social demands
The well-being of our future society can only be molded if both latent andsignificant social demands such as the climate crisis and the transition to
circular economies, food shortages and improvements to our social systems
are addressed now.

METHODOLOGY

Methodology: Business with science/ technology/ art/ design
We believe interdisciplinary innovation and experimentation are integral
to finding solutions for the betterment of our society.

A SOLUTION

A solution: Innovative platform of protein materials
Our primary solution is to develop revolutionary protein materials,
which are plant-based and can be broken down into biological nutrientsand reused.

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Appendix

Our sustainability strategy

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Appendix

Our sustainability
strategy
Sustainability is central to our mission.
Faced with the reality of a world with limited
resources, we are devoted to developing
new materials which we believe can havetransformational impact on society.
Our work to unlock the potential forindustrial use of protein materials has led
us to develop Brewed Protein™ fibers. Thesenature-inspired, plant-based materials thatcan be biodegraded, or can be broken down
into nutrients for reuse, have the potential
to close the loop in supply chains, and toenable circularity. We see our work to develop
innovative protein materials as a route toovercome social issues. We are building
industry-wide partnerships because we see
collaboration as a powerful approach tomagnify our impact. We are committed tosupporting and nurturing the talented andcreative individuals who drive our agenda
forward, and to enable our organization tocontribute to society through the creation oftransformational solutions.

We believe that truly impactful solutions need
to be built based upon businesses with highstandards of integrity. Accordingly,
we are working to minimize our operational
footprint through cleaner energy
procurement and raw materials produced
using regenerative agricultural principles,while also striving to ensure high standardsof sustainable sourcing and human rights
throughout our value chain, including thewell-being of our own employees.
To demonstrate our commitment to bestpractice in social, environmental, andgovernance topics, we are aiming to achieve
B Corp status as early as 2024, certifying
our high standards of performance,accountability, and transparency. In addition,
we are aiming to disclose our sustainability
activities aligned with the GRI standards
within 2023.
To help frame our sustainability strategy,
we developed the concept of ‘Impact =Innovation + Integrity’. This encompasses
the topics most material to Spiber and ourambitions and intended actions for the future.
An overview of our material topics can befound in the Appendix.

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Appendix

IMPACT = INNOVATION + INTEGRITYIMPACT=INNOVATION +INTEGRITY

PillarVisionGoal

IMPACT

Revolutionize industries with solutions inspiredby nature. From biobased, biodegradable textiles
to meat alternatives, we contribute to humanity’s
shift toward a more sustainable society.

▶ Scale production to provide alternative,
sustainable materials to customers globally

Expand the range of circular materials throughour technological innovation, and enable closedloop ecosystems for such materials throughdevelopment of partnerships.

▶ Push global industries toward a circular
economyTransformational impact

INNOVATION
Sustainable materials
Innovative teams

INTEGRITY
Responsible operations
Resilient organization

A highly motivated workforce that strives forchange drives this vision with interdisciplinary
teamwork. This culture further attracts global
innovators who strive to build a sustainable
society.

▶ Contribute to creating a circular, zero waste
economy through closed-loop production of
biobased biodegradable material▶ Achieve Net Zero by 2035
▶ Use 100% non-edible feedstocks▶ Create an equitable and inclusive culture in
our company and contribute to a more
equitable society▶ Transform the foundation of employeecompany dynamics and search for better
solutions for our future society throughinnovative pay practices

Our materials are supported by responsible▶ 100% sustainably sourced ingredients
operations, commitment to low-impact renewableand electricity
practices, and founded on governance withshared core values and philosophies.

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Appendix16

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Appendix

ImpactOur vision is to revolutionize industries with solutions inspired bynature. From biobased and biodegradable “Biosphere Circular” textiles toalternatives to animal products, we strive to contribute to humanity’s shift
toward a more sustainable society by mastering proteins.
We will achieve this through our growth plans, by scaling our production,
pushing our innovation, and delivering our unique materials to market.

Progressto dateShort-termgoals (by 2024)

Steps/activities
for achievement

Futureambitions

Built and started
operation at firstcommercial-scaleprotein production
plant in Thailand

Scale productionof fibers to provide
alternative,
sustainable textile
materials tocustomers globally▶ Increase
production
capacity of Spiber
materials

Contribute tocreating a circular,
zero waste economy
through closedloop production of
biobased, circularmaterials for a wide
range of applications▶ Develop
sustainable
alternatives toanimal products▶ Develop closedloop ecosystem for
Biosphere Circularmaterials“Biosphere Circular: materials and productsthat can be broken down into nutrientsand used as feedstock for fermentation,
including cellulose-based materials (which
can be broken down into glucose) suchas cotton, linen, and rayon fibers, andprotein-based items (which can be broken
down into amino acids) such as wool, silk,
and Brewed Protein™ fibers.”“Biosphere Circulation: a resource
circulation ecosystem utilizing biobased
and biodegradable end-of-use or wastematerials (such as bagasse, end-of-use
textiles, etc.) as raw materials which are
broken down into nutrients (sugars andamino acids), and used as feedstock for
microbial fermentation to produce Brewed
Protein™ polymer or other fermentation
products.”

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Appendix

Transformational impact

Our plan to scale

Spiber’s Brewed Protein™ polymer is arevolutionary material produced througha process of microbial fermentationthat is based on renewable plant-based
ingredients rather than non-renewable
petrochemicals as the primary feedstock.
There are several exciting ways Brewed
Protein™ materials can be used.

Until recently, Spiber’s efforts havebeen primarily focused on research anddevelopment. We are now in a new phase, inwhich we are scaling our production to offer
Brewed Protein™ fibers to a broad range ofcustomers. Production is underway at ourThai plant, with the plant in the USA—run
by our strategic partner ADM—following
closely behind. Brewed Protein™ polymer
production capacity will be ramping up at
both facilities in the coming years, and as
our business grows, we intend to further
expand capacity in order to maximize ourpositive impact on the world.

Our initial focus is on applications in textiles
for the apparel industry, where our fibers
offer alternative solutions to conventional
animal-based, plant-based, and synthetic
fibers. Additionally, we see opportunities
for use of our materials in cosmetics,
transportation, meat alternatives,
packaging, pharmaceuticals, and otherindustries.

Message

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Appendix

Brewed Protein™ material production process³

CURRENT PROCESS

Grow crops

FUTURE CIRCULAR PROCESS

18

3

Other applications
Future applications
for Brewed Protein™
materials include
cosmetics, faux hairfor wigs & extensions,packaging, and more

Meat
Protein fibers withtunable textures as aninnovative ingredientin plant-based,
fermentation-enabled
and cell-based meat

Fur/Leather
Replace conventional
animal-based andpetrochemicalderived fur andleather materials

Textiles
Bewed Protein
fiber, produced by
Spiber, subsequently
processed into yarns
and fabrics

Sugarcane,
corn,
etc.

Feedstockproduction

Fermentation

Purification

Process to extract
nutrients e.g.,sugarsMicrobes produce
Brewed Protein™
polymers

Extract and purify
Brewed Protein™
polymers forfurther processing

Collect / Sort

Biosphere circular wastes
From agriculture:
Bagasse, corn stover, etc.
From industries &consumers:
Textile trims & garments
made of natural fibers, etc.

Illustration inspired by Biofabricate’s “Diagram 12. Biofabricated Ingredient Material Production Example A”.

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AppendixAn alternative toanimal-derived materials
We believe that Brewed Protein™ materials
that have a soft and luxurious touch will serve
as a powerful and creative alternative toanimal-derived materials such as cashmere,
with the potential benefit of significantly
reduced comparative environmental andanimal welfare impacts. When compared to
cashmere production, we believe Brewed
Protein™ production emits fewer GHG
emissions, requires less water, and causes
97% less land-use related harm.⁴

Brewed Protein™ fibers in use
To advance the practical applicationof Brewed Protein™ materials in theoutdoor sector, we began collaborative
research with GOLDWIN INC. in 2015.
This partnership resulted in the Planetary
Equilibrium Tee, a blend of Brewed Protein™
fibers with cellulose, and the MOON PARKA
jacket made from Brewed Protein™ fibers,both launched by The North Face brandwhich is owned by GOLDWIN INC. in Japan.

4

A recent joint project from this partnership
is “The Sweater”, made of Brewed Protein™
fibers blended with wool. This traditional
outdoor item launched by the Goldwin
brand embodies a new style of sustainableproduction, combining materials from thenatural world with Brewed Protein™ fibers.

B ased on Spiber’s ISO 14040/14044 compliant comparative LCA study. Highlights of critically reviewed LCA results can be found on Spiber’s website.

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Appendix

OUR PEOPLE TALKING ABOUT IMPACT

Jacob Hauser

Rita Chuang

Benjamas Chanpuek

Material Design Section

Food Innovations Team Manager

Spiber (Thailand) Ltd. | Production leader

My team utilizes chemistry to explore theuntapped potential of Brewed Protein™
polymers. Chemical modification of Brewed
Protein™‘s molecular structure provides
direct control over its physical properties. By
exploiting this relationship, we can optimize
its processability under various conditions,selectively promote desirable characteristics for
specific applications, or impart completely newproperties altogether. Additionally, our research
into novel materials based on Brewed Protein™
polymers has shown that combining Brewed
Protein™ polymers with complementarymaterials can lead to new materials withsignificantly improved mechanical properties.
This development has great potential for
expanding the capabilities and applications of
Brewed Protein™ polymers. To ensure the newmaterials align with Spiber’s commitment tosustainable well-being and support our visionof Biosphere Circulation, our focus is to develop
methodologies which use materials derived
from renewable feedstocks to yield biospherecompatible products designed for degradation.

5

 itchie H, Roser M. Meat and dairy production. Our World inR
Data. 2017 Aug 25.

In the past five decades, the global population
increased by 230%, while meat consumption
increased disproportionately by 450%.5 Oneof the ways to meet the rising demand fora quality protein similar to animal-based
meat is to create “meat” directly from plants
or other novel protein sources. My team
explores frontier applications of our proteinmaterials for meat. Brewed Protein™ polymer
can be transformed into powerful, innovative
materials that are great for replacing not
only animal-derived textiles but also animalbased foods. This adaptability is possible
because the commonality between the three
is “protein-based.” Through cutting-edge
microbial fermentation, protein polymer
science, and food technology, our teamdevelops protein fibers with tunable textures
as an innovative ingredient in plant-based,
fermentation-enabled, and cell-based meat.
This project in the alternative protein spacefits into Spiber’s bigger scheme of providing
disruptive technological solutions to climatechange, pollution, and food shortages. It
also demonstrates Spiber’s dedication tocontributing to sustainable well-being for all
through systemic social and economic change.

My team is responsible for the mass productionof Brewed Protein™ polymer to serve as theraw material of Brewed Protein™ fibers. We
also research and develop manufacturingmethods and related technologies, including
fermentation and purification processes, toimprove production efficiency and reduce
environmental impact. Spiber (Thailand)
operates the first industrial-scale plant of
the Spiber Group, which presented a hugechallenge for our team to launch. Expanding
from pilot scale to industrial scale takes work.
We have made many improvements andtroubleshooting to overcome the problems
along the way. So far, in the first several
months of operation we have produced somedozens of tons of Brewed Protein™ polymer,
and we continue to improve productivity andreproducibility and support the productionof various proteins in the future. Our team’s
responsibility is not only to mass produce
Brewed Protein™ polymer. We also expect tobe a model for further expansion of our global
production facilities and provide training andeducation services on production technology
and methods to other plants worldwide.

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Innovation

Integrity

Appendix22

Message

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AppendixInnovation
Our vision is to expand the range of sustainable materials through our technological innovation, closed loop systems, and key partnerships.
Innovation is the beating heart of our business. We are committed to continuing to develop and push Brewed Protein™ materials to do more for a wider
range of industries. Given that innovation is not possible without the talented people who drive our business, we are firmly committed to helping ourteam thrive and reach their full potential during their time at Spiber.
Material topics

Progress to date

Short-term goals (by 2024)

Steps/activities for achievement

Future ambitions

Circularity

Proof of concept of turning
textile waste into sugar for
fermentation feedstock

Publish the first version of our design
guideline for Biosphere Circular
products by end of 2023

▶ Implement partnerships forcollection of Biosphere Circularfeedstocks and processing into
nutrients▶ Quantify the environmental
benefits of biosphere circularity
to inform consumers and policy
makersPush global industries toward a
circular economy

Greenhouse gas
emissions (GHG) & energy

Measuring baseline emissions
intensity through a criticallyreviewed cradle-to-gate LifeCycle Assessment (LCA) study6

Create a mitigation plan by 2024
to reduce emissions intensity to 10
kg CO₂ equivalent per kg Brewed
Protein™ fiber by 2029⁷

Implement plan in design of next
generation production facilities

Achieve Net Zero by 2035

Diversity, equity &inclusion (DEI)

Formed a provisional DEI
working group

Form an official DEI committee led
by senior management and define
activities to promote the diversity of
Spiber’s workforce

Bring ratio of women in management
positions (senior manager level andabove) at the Spiber Group to at least
30%⁸ by 2025

Create an equitable and inclusive
culture in our company and contributeto a more equitable society

Sourcing

Tested non-edible feedstock(bagasse)

Identify potential non-edible
feedstocks▶ Develop processes to utilize
various types of agricultural waste
and by-products as feedstock▶ Replace at least 50 tons (dryweight) of sugarcane sugar with
non-edible, biomass-based sugar
as feedstock annually for Brewed
Protein™ polymer production in
Thailand by 2026

100% non-edible feedstocks

Spiber’s ISO 14040/14044 compliant LCA study has been critically reviewed
by a panel of third-party experts. Highlights of critically reviewed LCA results
can be found on Spiber’s website.
67

 ur Scope 1 and 2 GHG emissions and further information onO
our reduction activities can be found from page 41.

Current ratio of women in management positions within theSpiber Group is 11% as of November 2022.
8

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SUSTAINABLE MATERIALSThe ingredients we use in our production
affect the impact our materials can have.
By committing to source sustainable inputs
and to ensure responsible practices in our
supply chain, we believe we can maximize
the positive impact of using Brewed Protein™
materials over traditional materials in avariety of applications.

Integrity

AppendixInnovating for greater impact:
Toward circular feedstocks
Our Brewed Protein™ materials are making
their way toward an increasing number oftarget markets, but we are still on the way
in our journey to innovate and reduce theenvironmental impact of our production
process. For example, we currently relyon sugarcane-derived sucrose and cornderived glucose as our primary fermentation
feedstocks in Thailand and the USA,
respectively. Although we work hard to
support sustainable agriculture practices inthese supply chains, we recognize that cornand sugarcane are ultimately food crops,
and that some externalities associated with
agriculture cannot be avoided.
Accordingly, we aim to shift toward
increasingly circular supply chains over the
coming years. The cellulose in sugarcane
bagasse or discarded textiles, for example, canbe broken down into sugars that can be usedby our microbes to produce Brewed Protein™
materials. Although it will be a considerable
challenge to develop the technologies
necessary to utilize these resources in a costeffective manner, we see it as an opportunity
to challenge existing paradigms and help
drive innovation throughout the field ofsustainable biomanufacturing.

9

 nited Nations Environment Programme, Putting the brakes
U
on fast fashion

Dope dyeing technology
Alongside the environmental benefits offeredby Brewed Protein™ fibers as compared toconventional fibers, we also seek and pursue
opportunities that will allow us to minimize
footprints throughout the value chains for
production of finished products that use ourmaterials. We have developed the capacity tocreate dope-dyed fiber–made by mixing dye
into the Brewed Protein™ polymer solution
before spinning into colored fibers. Once wecomplete implementation of this process
at commercial scale, we will be able to offer
pre-colored fibers which can then be used
to create colored spun yarns and fabrics
without requiring a subsequent dyeing
process. Currently, thousands of synthetic
chemicals are required to fabrics for theapparel and textile industry.⁹ A report by
the United Nations Environment Program(UNEP) found that fabric dyeing is the second
largest polluter of water globally causing
severe damage to marine life and aquatic
ecosystems.

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Biodegradability
With an estimated 500,000 metric tonnesof microplastic discharged each year fromlaundry wastewater,10 companies andconsumers are rightly concerned about the
impact of synthetic fibers. In light of this,we have demonstrated that unfinished
Brewed Protein™ fibers biodegrade in marine
environments and undyed Brewed Protein™
fabrics completely disintegrate in soil. The
marine water test was carried out under ASTM
D6691 using the OxiTop system, while thefabrics disintegration test was carried out innatural soil under ambient conditions in alaboratory scale test. In addition, unprocessed
Brewed Protein™ yarn can biodegrade within
30 days in seawater.

10 uropean Environment Agency, Microplastics from textiles:E
towards a circular economy for textiles in Europe

Integrity

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Appendix

Product safety

Intellectual property

Partnerships

Product safety is our top priority. The use of
Brewed Protein™ fibers in textile products
has been confirmed to be safe throughevaluations including third-party dermal
irritation and sensitization tests. As wecontinue to develop new materials andproducts, we are committed to ensure thatevery product that we launch will meet
relevant industry standards of product safety.

Our business is built upon a proprietary
technology platform that allows us tocreate various Brewed Protein™ materials.
We vigorously protect our intellectual
property to maintain our competitive
position. We have over 160 patents¹¹
covering a wide range of inventions related
to the design, production, modification,
manufacturing, and processing of Brewed
Protein™ materials.

Partnerships help us validate what weare doing and grow faster than we could
otherwise. A key strategic partnership in
production at this stage is with ADM, who
are using their expertise in large-scale
fermentation technologies and extensive
agricultural supply chains to produce
Brewed Protein™ polymers in the USA.
We also partner with industry bodies
and customers to understand market needs
and meet best practices. We will continue
to identify partners and engage in further
collaborations moving forward.

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 62 patent families including pending and unpublished1
applications, of which 41 have at least one granted patent asof November 2022.

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Appendix

INNOVATIVE TEAMS
Since the beginning of our journey when
co-founders Kazuhide Sekiyama and Junichi
Sugahara shared the initial vision that
became Spiber, through the years spent
in research, development, and scaling our
production, all of the progress we have had
as an organization has happened thanks to
the talent, ambition, entrepreneurship, andinnovation of our people. We firmly believethat a diverse team with rich backgrounds
and expertise is an enabler to both social andtechnological innovation.

Attracting and retaining talent
We are using a multifaceted approach to attract and retain a talented and diverse
group of people. As a result, as of November 2022 we employ over 300 employees worldwide
who have a total of 13 different nationalities, and our global voluntary employee turnover in
2021 was 4.3%.

RewardEmployees at our headquarters in Japan and subsidiaries in Thailand and the USA
all decide their own salaries and share the decision openly within each company.

Our salary system, which could be viewed as a sort of social experiment, requires
participants to consider the meaning of core concepts such as wages, labor, value,
results, and fairness. While this experience may sometimes be challenging, we
believe that participation in our system presents an important opportunity for
growth and self-development. It creates a sense of empowerment and ownership,
while also encouraging entrepreneurship and self-determination.

As we have ambitions to gradually expand the areas within our supply chains where
living wages are ensured, our salary system is a starting point toward this vision,
allowing each individual in our company to define their salaries with considerationof the balance between their own needs and the sustainability of our company.

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Appendix

Employee engagement

Understanding what matters most to our colleagues is extremely important, so we
conduct regular employee engagement to get feedback and ensure we are doing themost we can to make sure our team members are happy.
During feedback meetings that are conducted several times a year, any Spiber
employee can discuss their interest in working in other fields and request cross-teamduties or transfers. If the request is in the best interest of the individual and thecompany, the employee can receive support to work in other fields even if they do
not have experience.
We also conduct employee surveys every three months focusing on different
topics such as mental health, well-being, and employee satisfaction. Depending on
the results, our Personnel Management Section and Human Resources Section may
follow up with employees to provide any necessary support.

Working environment

We have established a flexible working environment, including fully-remote
working and the option to work for a reduced number of hours, allowing us toincrease employee retention and diversity of the people we hire. We also provide
support to ensure and respect the work life diversity of those employees whochoose to work in this manner. Additionally, we promote local hiring, regardlessof educational background, as well as hiring talented individuals from aroundthe world. Individuals who relocate to Japan from other countries upon joining are
fully supported by our staff during their move to our Tsuruoka headquarters.

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Spiber’s salary system
Throughout the years, societies have comeup with standardized measures and criteriasuch as experience, role, position, and age
to determine how individuals should becompensated for their work. Most peoplein our society do not question thesemeasures and have come to accept themas normal practice. At Spiber, however, weare constantly searching for the best ways
to operate, which has led us to invent andcontinuously improve our own salary system.

12

 ocial Salary Setting at Spiber: https://www.hbs.edu/faculty/
S
Pages/item.aspx?num=57865

Since 2015, we have applied a distinctive
and transparent salary system12 where ourgroup employees in Japan, Thailand and USA
choose their own salaries. This novel salarysystem pushes each individual at Spiber
to openly raise fundamental questions
towards society—how do we define workor wages, what does it mean to be treated
and assessed fairly, and what balance do wewant in life. Additionally, this system helps
us to address factors in gender pay gap andensures every employee receives at least aliving wage.

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Diversity, equity,and inclusion (DEI)
We strongly believe that there is greatstrength to be found in diversity. Accordingly,
we seek to foster an inclusive workplace where
all employees feel comfortable and valued
and are provided with equitable access to thesame opportunities. We acknowledge that not
everyone is born under similar circumstances.
We consider this when thinking about true
fairness, and we act accordingly.
We believe this is the duty of those that havethe ability and capacity to do so.
We have a roadmap to promote DEI andincrease diversity in our business, with a key
target to have 30% women in managerial
positions by 2025 at Spiber as a group.

Building on this goal, we plan to accelerate
our broader DEI initiatives in 2023-2024,
including:▶ Create a Diversity, Equity and Inclusion
policy, applicable to the Spiber Group,
led by senior management▶ Create and run a DEI committee▶ Provide DEI training to raise awarenessand help create a more inclusive culture▶ Introduce a program for employeeswith disabilities to ensure equityof access to recruitment, careerdevelopment, promotion, training,and other employment opportunities
for all staff▶ Introduce DEI considerations to therecruitment process

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Yamanoko Childcare Center
Bridging infrastructural gaps between Spiber
and Spiber employees, work and life, andeducation and society is another pillar of ourinclusion strategy. This is the reason why we
operate Yamanoko Childcare Center, a daycare center for children aged 0–5 years old,
where the children spend the day with natureand creativity.
The center was set up with support fromthe Japanese government. Spiber has been
investing roughly ¥30 million per year in its
operations, in addition to having invested
considerable time and effort to ensure thatthe center has the right people and resources
for it to be appropriately managed.
Yamanoko’s education program emphasizes
access to varied learning opportunities aswell as the development of social skills andproblem-solving abilities at an early age,
aiming to enhance children’s well-being andsense of connection with nature and theworld we live in.

Community engagement
The presence of the center allows working
parents to return to work more easily after
the birth of their child, which is particularly
important for working mothers and isnecessary to help achieve greater genderequality in the workplace, an area in which
Japan currently lags. Although running achildcare center poses many new daily
challenges, with our goal of sustainablehuman well-being in mind and the potential
for positive impact on our community, we
intend to continue improving the center’s
infrastructure and provide the best educationfor our community’s children.

Yamanoko is primarily used by familiesof Spiber and partner company employees,
providing childcare for working parents.
In May 2022, 47 families were using
the center, with 61 children spending a
combined total of 95,000 hours at thecenter in a year.

We are a member of the Tsuruoka Science
Park community, a growing “town” supported
by Yamagata prefecture and Tsuruoka city,
involving research institutions, educational
institutions, private companies, and citizens.
The park pushes to strengthen the local
bioscience community, materialize the visionof creating social value, and vitalize thelocal economy. We are also involved in local
education programs, as Spiber employees
frequently present at local high schools andoffer tutoring services to local students.

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OUR PEOPLE TALKING ABOUT INNOVATION

Hiroyuki Nakamura

Tomoko Nagao

Yoshimi Tanaka

Molecular Creation Section |Project Manager

Yamanoko Childcare
Center Director

Human Resources Section Manager| Salary System Committee Member

I’m a member of the Molecular Creation
Section, where we design and evaluate ournext generation of proteins. We also conduct
a wide range of research and development
to establish the protein design methodology
itself. The work at my team involves collecting
and analyzing structural proteins fromnature, learning from them to understandthe relationship between protein design
and material characteristics, and using thisknowledge to create new protein designs
that aim to enable desired functionalities
and productivity. In order to make mass-scaleindustrialization of protein materials a reality,
we need to develop technology that allows
us to freely design materials that meet therequirements of end products. The protein
designs that we create at Spiber will continue
to change and improve as we make new
discoveries. As a researcher, I take great pridein being at the forefront of this evolutionary
process of design adaptation.

The Nursery Section of the Culture &Environment Division operates Spiber’s twocompany nurseries (Yamanoko Childcare Centerand Yamanoko Childcare Center Home) basedon Spiber’s philosophy of maintaining personal
well-being within a circular, sustainable society.
Yamanoko’s aspiration is for the people who
attend our nursery to live in their unique way
while also fostering a keen awareness thatthey are part of a global, circular ecosystem.
Practicing this ambition and finding happinessin the moments can in itself be considered
the “pursuit of well-being.” We continually
think about what our corporate philosophy
means through the lens of “personhood” andcomprehensively consider what a “place to live”
or a “community” mean for all people, fromchildren to adults. After all, people are the ones
who go out and build a better society, so when I
look ahead to the next several decades, I sensea wealth of possibility in both our materials
business as well as our efforts to raise the next
generation.

Our Salary System Committee implements
ongoing improvements to Spiber’s uniquesalary system, in which each person decides
their own salary, and salary amounts are
publicly visible within the company. How doyou share limited resources while balancing
the value of your contributions and thecompany’s financial situation? We tackle heavy
questions: What are salary, labor, evaluation,
and achievement? For that matter, what is true
“fairness?” This radical system pushes each of us
to grow. Through that growth, we break throughpreconceived notions and foster new mindsetsthat allow us to consider and develop bettersystems for the future.

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Integrity
Creating operations that uphold our values—using resources wisely and embedding company values into our culture and ways of working.
Our materials are supported by responsible operations, committing to low-impact renewable practices, and founded on governance with shared corevalues and philosophies.

Material topics

Progress to date

Short-term goals (by 2024)

Greenhouse gas
emissions (GHG) &energyMeasured and sharing our direct Measure and disclose our carbon
GHG emissions
footprint including both directemissions and those from our
supply chain

Sourcing

Created Spiber’s Sustainable
Sourcing Policy▶ Define and identify strategy tosource sustainable materials▶ Identify risks within supply chainsthrough Human Rights Impact
Assessment (HRIA) by 2023 Q2

Steps/activities forachievement

Future ambitions▶ Supply chain GHG emissions
screening▶ Process and feedstock
optimization▶ Calculate and report carbon
intensity, energy used and %renewable energy used

Use 100% renewable electricity
through direct use and support for
construction of new facilities forrenewable electricity generation
aiming for 2025, and at the latest
by 2027▶ Increase number of suppliers
that adhere to our Sustainable
Sourcing Policy▶ Increase traceability within our
supply chains▶ Implement methods andactivities to reduce social andenvironmental impact within
our supply chains

100% sustainably sourced materials

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AppendixRESPONSIBLE OPERATIONSGreenhouse gas emissions (GHG) & energy
Climate change is a crisis that all of humanity must respond torobustly and swiftly. We are committed to playing our part and willmeasure our company’s carbon footprint and disclose it throughan internationally recognized framework (e.g. CDP or TCFD) for
the year 2022 (reporting in 2023) onward. Additionally, with theaim to be Net Zero by 2035, we are looking for the most effective
framework to work toward this goal while growing our businessand impact.
We have measured our Scope 1 and 2 carbon footprint for
the first time and have carried out a high-level scope 3 screening
process based on financial data to understand which parts of our
supply chain have the greatest impact. Since we were not yet
engaged in commercial production in 2021, these numbers willchange significantly for 2022. We will continue to measure andmonitor our footprint as our plants begin operation andour business grows, with the aim of decoupling growth fromcarbon emissions.
We plan to set a clearly defined emissions-reduction pathway tofutureproof the business. This will be based on reducing carbon
emissions intensity¹³ for our product to safeguard our growing
company. We believe a sharp focus on the carbon intensity of our
products will drive further innovation, boost investor confidence,and provide greater resilience against climate-related impacts
and regulation.

13

Emissions intensities to be calculated by cradle-to-gate LCA.

GHG emissions footprint¹⁴
Tonne CO₂e
Scope
category

Total

Japan

ThailandUSA

Scope 1

1,290

857

427

5

Scope 1+2

5,010

1,976

3,028

5

Scope 2

14

3,720

1,119

2,601

0

 HG footprint boundaries: our footprint includes Spiber Inc., Spiber (Thailand) Ltd andG
Spiber Americal LLC sites. The calculation was done in accordance with the GHG Protocol
with advisory from an external consultant.

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Increasing renewable electricity
We are aiming to purchase renewable energy
in the USA through a virtual power purchaseagreement (VPPA) which will create newrenewable electricity generation equivalent
to our global consumption. In tandem, weare continuing to reduce energy use andplanning to source lower impact energy
wherever possible in a meaningful way.
Due to the size of our facilities comparedto our energy demands, it is not possible togenerate sufficient renewable electricity
on-site. Through a VPPA, we would be able tocommit to long-term financial support of new
renewable electricity facilities equivalent toour energy usage.

15

 ignatory on non-binding Letter of Intent for Clean Energy
S
Demand Initiative between Government of Thailand andprivate sector.

In Thailand, because of current government
regulation on electricity, we are not able touse any off-site power purchase agreements
to meet our renewable electricity needs orpurchase renewable electricity in a way thatwould have any real impact on the world
today. Thus, we decided to re-focus our“environmental impact” budget on obtaining
a larger VPPA in the USA that would cover our
global electricity usage. According to today‘sinternational norms, we cannot count the
renewable electricity we support in the USA
against our electricity usage in Thailand in
our carbon footprint. For this reason, we
have not yet set a renewable energy
commitment; however, we have started
working with international organizations toengage the Thai government on creating
new ways that companies in Thailand canmake significant impact through renewableenergy investments.15

We are also considering an additional
onsite PPA or VPPA to cover our energy usage
in Japan. Although our energy usage in Japan
will be a small fraction of our global energy
usage once we scale up our production
volumes, we believe that where possible,
regional options with additionality possess
the most value for society.

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Lower carbon vs. animalderived materials
In parallel with scaling production, we arecarrying out Life-Cycle Assessments (LCA)of Brewed Protein™. This will be an ongoingprocess, though preliminary results show that
Brewed Protein™ fibers have lower associatedcarbon emissions than animal-derived
alternatives such as cashmere or merino wool.
Based on our LCA, the climate change impact
from Brewed Protein™ fibers will be 50% lessthan Mongolian cashmere as produced today,
based on our Thai operation, and over 75%
less after the implementation of renewableelectricity in production.

16

I SO 14044 compliant comparative cradle-to-gate LCA study
based on pre-production data for Brewed Protein™ andsecondary source information for Austrailian merino wool andMongolian cashmere. Comparative values based on full-scale
production of polymer in Thailand and fiber spinning in Japanand using PEFCR guidance version 6.3 allocation factors; water
use is scarcity weighted. Harm from land use is based on
species richness loss.

¹⁷ Based on Spiber’s ISO 14040/14044 compliant comparative LCA
study using ReCiPe 2016 (H) Land Use [annual crop equiv-yr] andPEF allocation for co-products of goat rearing. Highlights ofcritically reviewed LCA results can be found on Spiber’s website.

As well as lower carbon emissions, our
LCA16 shows that making Brewed Protein™
fibers also uses less water. Brewed Protein™
fiber production uses 94% and 86% less waterand creates 97% and 86% less land-use related
harm than production of Mongolian cashmere
and Australian merino wool, respectively.
While Brewed Protein™ fibers show lower
water consumption, carbon emissions, andland use, the LCA does show an increased
environmental impact in some other areas
compared to equivalent animal-derived
products. This includes higher consumptionof petroleum products and higher toxicity.
These impacts come from chemicals used inagriculture for our sugar feedstocks, harvest
and burning practices from sugarcane
agriculture in Thailand, as well as higher
use of process chemicals, electricity, andthermal energy in our production processes.
We are responding to these issues, withplans in place to make improvements as we
scale production, including supporting theconstruction of new renewable electricity
facilities and pursuing partnerships to
implement sustainable and regenerative
agriculture practices.

Compared to Mongolian cashmere, Brewed
Protein™ fibers use 94% less water and does
97% less habitat damage.17

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Water stewardshipand biodiversity
Water is a precious, shared resource, andwe seek to use it responsibly by reducing
consumption, reusing water where possible,
and improving the quality of wastewater.
We closely monitor wastewater quality in
our facilities. To help us manage water andother environmental impacts in our directly
operated facilities, we will implement quality
and environmental management systems
certified to ISO 9001 and work towards
ISO 14001 environmental management
certification, respectively to ensure oursystems, policies, processes, and objectives
are robust and provide the necessary controls.
Responsible agricultural practices in our
feedstock sugars supply chains also seek tominimize biodiversity damage.

Other environmental goals
We will measure our baseline impacts and set
goals for impact reduction for eutrophication,water use, and toxicity impacts of our
production. We have identified these as areasof concern through our LCA, and the textile andapparel industry have also identified these as
areas of concern for the industry as a whole.

Integrity

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Sustainable and circular
Our two Brewed Protein™ polymer
manufacturing sites are situated close to areas
where key raw materials are grown: corn in the
USA and sugar in Thailand.

Sugarcane sourcing in Thailand
We want to ensure transparency andtraceability throughout our supply chain, andto be an advocate for high standards of labor
practices and well-being as well as supporting
regenerative agriculture practices. In Thailand,
all the sugar we buy is supplied by members of
the sustainable sugarcane platform Bonsucro,which aims to reduce the environmental andsocial impacts of sugarcane production.

Corn sourcing in the USA
In the USA, our strategic partnership with
ADM gives us ready access to plant-based
dextrose from corn for use as a feedstock. From
the first year of production, some of the corn
will be sourced from growers implementing
regenerative agricultural practices including
cover crops and reduced tillage, which improvewater quality and biodiversity and reduce
GHG emissions. Emissions reductions and soil
carbon sequestration will be calculated using
Field to Market’s platform, and we will pursue
ISCC certification. We will employ this method
for an increasing proportion of the corn in
subsequent years, targeting 100% within
five years and report on progress such as thecoverage of volume through this method in
addition to the positive environmental impact.

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Sourcing and human rights
Spiber is committed to choosing raw materials
that have minimal environmental footprints
or trust-worthy certifications, and to identify
and purchase from the most responsible
suppliers. Where needed, we aspire to engage
with value chain partners to create supply
chains we are proud to source from. We havedeveloped a Sustainable Sourcing Policy which
we are implementing through dialogue with
our suppliers. Our Sustainable Sourcing Policy
follows a Human Rights Due Diligence (HRDD)
approach for preventing and mitigating
adverse human rights impacts, including
measures on how to tackle grievances in the
supply chain.

We intend to select suppliers and business
partners that share our vision. During thefirst stages of supplier selection, we havea screening process in place in which we
assess any past or ongoing environmental,social, or governance (ESG) incidents related
to the supplier or business partner. As wescale up production and have more concrete
partnerships and supplier contracts in place,
we plan on strengthening our supply chain
management practices by conducting periodic
evaluations of facilities and operations thatprovide goods or services to our company andensuring compliance with our policy throughquestionnaires and direct engagement.
As we strengthen our supply chain
management, we plan to act upon the issues
mentioned in our Sustainable Sourcing Policy.
We will conduct a Human Rights Impact
Assessment (HRIA) to identify and prioritize
human rights risks and will take action to
mitigate key threats.

To strengthen our approach as
production scales, we plan to:▶ Ensure our suppliers implement
sustainability-related commitments
or have plans to close potential gaps

▶ Identify and prioritize risks within
supply chains through Human Rights
Impact Assessment (HRIA) by 2023

▶ Provide training for suppliers acrossthe supply chain to ensure transparency
and adherence to our policy▶ Implement and communicate an
anonymous grievance mechanismthat can be used by all stakeholders

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Health, safety, and well-being
Health, safety, and well-being management
is ingrained in our business, with a wellestablished near-miss reporting system.
We are pleased to report there have been
no serious incidents recorded since thecompany was founded, and just sevenminor incidents have been reported
during this time.

Our health and safety focus willcontinue at our production sites and will
include initiatives such as appropriate
training (including qualifications) in key
areas such as the handling of acids, organic
solvents, hazardous materials, and toxic
substances, as well as countermeasuresagainst static electricity.

The COVID-19 pandemic has taken ahuge toll on our society and has pushed
our health and safety management
processes further. Procedures are in place
to prevent transmission of COVID-19 in theworkplace, while striving to preserve theflexibility needed to run our business. This
includes avoiding travel where possible,
implementing remote working options,providing and stipulating the use of PPE andsanitizers, implementing social distancing,performing regular temperature checks,
and installing humidifiers to prevent the
spread of viruses.

We conduct monthly health check hearings,
a health assessment and dialogue with each
employee three times a year, and periodic
health checkups and stress assessments. As
we continue to grow our business, we will
strive to further strengthen health, safety,
and well-being at Spiber. In addition, we
require that all employees undertake a semiannual check-up quiz regarding geneticallymodified organism testing to further assure
employee health and safety.

Next steps:▶ Develop and improve guidelines on
health and safety to raise awareness of
its importance, prevent accidents fromoccurring, and outline the measuresthat should be taken in the event that
any incidents do occur.
▶ Create resources on colleague mental
health and well-being, to raiseawareness and support employees
who may be struggling.

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RESILIENT ORGANIZATION

Governance and business ethics
We are committed to setting high standards
for our employees and to establishingan operating framework that exercises
appropriate oversight of responsibilities at alllevels with key governance characteristics.
We have constantly been improving ourorganizational structure in order to optimallybalance the agility required by our status
as a growing company with demonstrated
high integrity achieved through rigorous andappropriate management practices.
Our executive vice presidents oversee
activities throughout all divisions which helps
ensure that the right people, including senior
management, have input into the right areasof the business at the right time, enabling
greater agility and quicker decision making.
Executive officers, executive vice presidents,
and division and office managers then gather
and discuss impacts, initiatives, and priorities
through weekly senior management meetingsand executive meetings conducted twicea month.

There are various committees including
the Compliance & Risk Management,
Environmental Protection, Health & Safety, andIntellectual Property Committees, which allreport directly to the Executive Officers (seepage 50) and are tasked with ensuring that theBoard of Directors’ procedures and operationsalign with the company’s governanceambitions, corporate values, and external
compliance demands.
The Compliance & Risk Management
Committee is responsible for overseeing
enterprise risk management and mitigation
through a regulatory lens (including
environmental, social, operational, IT,
compliance, and reputational risks). The
existence of these committees ensurescoverage of a range of topic areas andhelps us to manage risks effectively.

We offer anonymous grievance mechanisms
and a whistleblowing hotline for workers in
our head office and supply chain, allowing
workers to raise issues in a confidential mannerat any time to an external party. Our nonretaliation policy and privacy for all employees
means that the person who reports (i.e. thewhistleblower) will be protected by law.

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AppendixCompliance with laws
and regulations
We recognize that our corporate governancestructure will be critical for our success inmeeting our goals and future priorities.
Our approach to compliance is outlined in
our Business Compliance Policy. Our policy
reiterates the duty of directors, employees,
and all officers to comply with relevant laws
and keep abreast of social trends and changes
in the environment related to those laws
and regulations.
The policy focuses on the work environmentand commitment to establish a personal
compensation system, highlighting
respect towards diversity, individuality,and personality. It also demonstrates ourcommitment to building a low carbon
society and addressing environmental risk.
We plan to update this policy depending on
stakeholder, social and environmental needs,
and in alignment with our existing policies.
We are implementing several risk mitigationplans including crisis management
training. Moreover, a Social Responsibility
Communication Q&A is also being developedby our Public Relations team in collaboration
with our Sustainability team to ensure thestatements that we make are accurate andfree from technical errors.

Cyber security
A robust approach to cyber security isessential to our company as we recognize
the increased risks in an increasinglyinterconnected world.
We have implemented cyber security
measures to avoid the operational risk anddamage which would be caused by theloss or unauthorized disclosure of digital
information. Our Information Security
Management Regulations Plan covers all
our sites and includes security systems
for cloud-based platforms and internal
premises. Company-wide cyber security
is also discussed in the Compliance & Risk
Management Committee.

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OUR PEOPLE TALKING ABOUT INTEGRITY

Sunita Darbe
Environmental Footprint Management
Section Manager

My work at Spiber focuses on reducing
our operations’ environmental footprint.
By carrying out Life-Cycle Assessment(LCA) and carbon accounting and throughconsultations with teams across the SpiberGroup, our team tries to translate analysis
into improvements. New technologies taketime to optimize. For example, animal fibers
have been used for thousands of years;
petrochemical-based synthetics have been
optimized for over a century. The processes
and supply chain for making Brewed Protein™
fiber are brand new and can be improved
rapidly with collaborative efforts both within
the Spiber Group and together with ourpartners.

Integrity

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Appendix
Spiber’s material topics
To define our strategy and establish oursustainability priorities, we conducteda materiality assessment with a leading
sustainability consultancy. Together, we
identified the key topics to cover based onsustainability frameworks such as the Global
Reporting Initiative (GRI) and industry
trend analysis.
We interviewed external stakeholders,
including investors, customers, NGOs,consumers, and suppliers to better
understand some of the key challenges
in more depth and to help our internal
leadership team better understand thebusiness perspective, motivation, andstrategy for the next few years.

Diversity, Equality & Inclusion
Water Stewardship

Sourcing

Circularity

TechnologicalInnovation

Partnerships

Social Innovation & Education
Biodiversity

Talent Attraction & Retention

Organizational Resilience & Governance

External18

INCREASING PRIORITY

The materiality assessment revealed
the most important topics for us:▶ GHG emissions and energy:
Continually reducing the intensityof our materials, both in production
and throughout our supply chain e interviewed slightly more external stakeholders thanW
internal, therefore, the external view holds more weight in
the results of the materiality matrix this year.

Human Rights

Product Safety & Quality▶ Technological innovation: Using ourrevolutionary new materials to solve
global challenges in the apparelindustry and beyond

18

GHG Emissions& Energy

Business Ethics& Philosophy

Internal

45▶ Circularity: Innovating to close theloop in apparel production▶ Sourcing: Building our supply chain
to enable lower environmental
impacts and decent work via healthy
partnerships with suppliers▶ Talent attraction & retention:
Recruiting diverse teams globallyand creating transparent andinnovative pay practices

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Stakeholder engagement

Impact assessment

In addition to the materiality assessment, engaging with
our diverse set of stakeholders helped to confirm the different
needs and interests of our stakeholders and what their
expectations are of Spiber:

To understand the actual and potential impact of Spiber andBrewed Protein™ materials we commissioned a third-party
impact assessment of our company and product.

Brands and consumers: Develop textiles thatcirculate the apparel industry with their desirable
aesthetics, touch, performance, and reduced
environmental impact
Suppliers and processing partners: Build strong,trusted relationships

The impact assessment reviewed Spiber’s sustainability efforts
and work to date using a methodology based on six key impact
areas, inspired by the B Corp model: Product, Supply Chain,
Governance, Employee Treatment, Community Activities, andEnvironmental Impact. This assessment began work to quantify
our actual and potential impact and included recommendations
to improve and maximise our impact over time, many of which
we have adopted and communicated within this report.
Spiber’s maturity, impact,
and importance

Product

Governance

Employee
Treatment

Enviromental
Initiatives

Community

Employees/colleagues: Have pride in Spiber
and the impact the business is having
Investors: Manage ESG-risks and opportunities
well to maximize investment

Supply Chain

Influencers including NGOs: Take leadership in
the industry and maintain robust ESG practices

Maturity:
Spiber practices
compared tocommon practiceand best practice

Impact:actual (or potential)
impact that Spiber ishavingin this area

Importance:scale or importanceof the impact (e.g.
in terms of people
helped or carbon saved)

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ImpactSpiber and the Sustainable
Development Goals
We are an ambitious, solution-driven
business. We create products thatwill support the transition to a moresustainable world.
To better understand our role,
we have mapped some of ourmain activities against the UN
Sustainable Development Goals(SDGs). Governments, NGOs, andbusinesses around the world aretaking action to achieve the 17 SDGs
and support global sustainable
development, and we are committed
to doing our part to help deliver
them as well. We have identified
four goals where we can have thegreatest impact, and our actions
against these targets are outlined asfollows:

Innovation

Goals

Integrity

Appendix

How we contribute

Our progress to date

Goal 8: Decent Work▶ Through research ▶ Policies developed in line
and Economic Growthand developmentwith the Internationaland scaling ourLabor Organization
8.2: Achieve higher
production,
Spiber(ILO) conventions, thelevels of economic
is built on theOECD Guidelines for
productivity throughtalent,ambition,
Multinational Enterprises,
diversification,
entrepreneurship,
the United Nations
technologicalandinnovationofGuiding Principles (UNGP)
upgrading, andour people andon Business and Humaninnovation, including
local
communities
Rights, and the United
through a focus on
Nations Sustainablehigh-value added▶ Through ourDevelopment Goals (SDGs)
and labor-intensive
own living wage
sectors

commitment andour engagementin the supply
chain▶ Strong health and safety
management and wellbeing initiatives including
stress self-analysis survey

Our future actions▶ Identify risks within
supply chains through
Human Rights Impact
Assessment (HRIA) by
2023 Q2 and act upon
any latent and salient
human rights risks
identified in the HRIA,
such as the humanrights risks revolving
migrant workers andthe provision ofliving wage

▶ Continue to promote
gender diversity withgender statistics
tracking and a target▶ Operating Yamanoko
to bring the ratio ofChildcare Center, thewomen in managementcompany childcare facility
positions (senior
to help families with work/
manager level andlife balance
above) at the SpiberGroup to at least 30% by
2025

48

Message

About

Sustainability

ImpactInnovation

Integrity

Appendix

Goals

How we contribute

Our progress to date

Our future actions

Goal 9: Industry
Innovation andInfrastructure

Innovation is core
to our business,
as shown by our
product itself: thecreation of bioprotein
and the exciting
opportunities in arange of industries

Spiber is a member of
the Tsuruoka Science Park
community, which pushes
to strengthen the local
bioscience community,
materialize the vision ofcreating social value, andvitalize the local economy▶ Continue to develop
Biosphere Circulation
program (see page 20),and continue researcharound resource
circulation, and useof agricultural byproducts as feedstock
for production of Brewed
Protein™ polymers

9.1: Develop quality,
reliable, sustainable,
and resilient
infrastructure,including regional
and transborderinfrastructure, tosupport economic
development andhuman well-being,with a focus onaffordable andequitable accessfor all

Goal 12: Responsible
Consumption and
Production

Our focus is on
creating a moresustainable
12.2: By 2030, achieve alternative to arange of materials.
the sustainable
To deliver that wemanagement andare building
efficient use ofa responsible
natural resources
approach to all
aspects of ourbusiness andsupply chain▶ Publish the first versionof our design guidelines
for Biosphere Circular
products by the endof 2023▶ Conducting research on
the use of agricultural
by-products and wastematerials as feedstock▶ Responsible sourcing
processes in place
including purchasing
Bonsucro certified sugar,
and implementing ourBusiness Compliance andSustainable Sourcing
Policies

Introduce efficiency
measures and recycling inour domestic and overseas
production

49

Message

About

Sustainability

ImpactInnovation

Integrity

Appendix

Goals

How we contribute

Our progress to date

Our future actions

Goal 13: Climate
ActionWith the climate
emergency evermore prevalent,
we can incorporate
climate resilient
measures into ourbusiness from thestart, and continue
to ensure Brewed
Protein™ fibers have
low environmental
impactConducted an LCA—Brewed
Protein™ fiber production tohave lower GHG emissions
when compared to cashmere▶ Disclose carbon
footprint, including
Scope 3

13.2: Integrate
climate change
measures into
national policies,
strategies andplanning▶ Create a mitigation
plan by 2024 to reduce
emissions intensity to 10
kg CO₂ equivalent per kg
Brewed Protein™ fiberby 2029 as measured bycradle-to-gate LCA offiber production▶ Achieve Net Zero by2035▶ 100% of the corn used
to produce polymers
at the USA plant will befrom corn farmed using
regenerative agriculture
practices such as covercrops within five years

50

Message

About

Sustainability

ImpactInnovation

Integrity

Appendix

GOVERNANCE STRUCTURE

Shareholders Meeting

Board of Directors
Supervisory
FunctionsNomination
Committee

Remuneration
Committee

Audit Committee

Executive Officers
Executive
Functions
Divisions &Subsidiaries

VariousCommittees

Accounting Auditor

Internal Auditor

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