Shared-X Impact Report 2021

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<strong>Shared</strong>-X<br />

<strong>Impact</strong> <strong>Report</strong><br />

- <strong>2021</strong> -

Content<br />

Pg.<br />

A Letter From Dr. Tony Salas, CEO<br />

<strong>2021</strong> Highlights<br />

<strong>Impact</strong> Farming<br />

Smallholder <strong>Impact</strong><br />

Environmental Excellence<br />

Regenerative Agriculture Takes Off<br />

Leading By Sharing<br />

Looking Towards 2022<br />

2<br />

3<br />

4<br />

5-6<br />

Social Investment 7<br />

8<br />

9<br />

10<br />


“…to survive isn’t necessarily to thrive;<br />

<strong>Shared</strong>-X sees constant innovation as<br />

an essential ingredient to ensure a<br />

better tomorrow for every farmer, while<br />

protecting the future and food security<br />

of everyone.”<br />

2<br />

Dear Friends & Fellow <strong>Shared</strong>-X’ians,<br />

What a year for <strong>Impact</strong> Farming! Through the acceleration of key businesses, <strong>Shared</strong>-X has completed its<br />

ecosystem of regenerative agriculture. Paying attention to soil health and understanding the biodynamics of<br />

nutrient uptake, carbon sequestration and microbial activity is key to the establishment of a sustainable<br />

farm. This enables our impact to be even deeper and broader than before, by creating the most well-rounded<br />

and sustainable impact on important environmental, social, and governance components (ESG) in the food<br />

industry.<br />

Specifically, <strong>Shared</strong>-X’s <strong>Impact</strong> Farming principles are now fundamental in the three divisions we have<br />

accelerated, each of them in their own way helping to scale <strong>Shared</strong>-X’s business and impact: Bananica -<br />

organic fresh fruits; Nampi Foods - specialty and functional superfoods, and Kumara Farms - medicinal<br />

botanicals. This complete portfolio of companies launched by <strong>Shared</strong>-X guarantees industry leading access<br />

to premium markets and leading technologies for associated farmers, while at the same time reinforcing the<br />

important ESG components of <strong>Impact</strong> Investing.<br />

Since adapting to new market and environmental challenges comes second nature in the <strong>Impact</strong> Farming<br />

model, this past year tested one of our principal core values: be bold. To survive is not necessarily to thrive;<br />

<strong>Shared</strong>-X sees constant innovation as an essential ingredient to ensure a better tomorrow for every farmer,<br />

while protecting the future and food security of everyone. No more apparent is the need for innovation than<br />

in the face of climate change; notably, specialty crops are even more vulnerable. Therefore, we are<br />

promoting the use of biostimulants to cope with a stressful environment in the fields. New benchmark yield<br />

marks will be established when we think about nurturing the soil and start understanding the effects of<br />

biostimulants in the different metabolic pathways of the plants.<br />

On the investment side, we are seeing how the capital market is accommodating the need to incorporate<br />

investment strategies that generate real ESG indicators, or the establishment of funds that specifically invest<br />

in impact companies. I still perceive that this is a process in the making, sometimes with more desire than<br />

knowledge, trying to address aspects that need deeper reflections or problems that are solved in the long<br />

term with a holistic and multisectoral approach. Importantly, it is refreshing to see how there is a growing<br />

awareness of <strong>Impact</strong> Investing, when no more than 5 years ago, it was an issue that went unnoticed.<br />

<strong>Shared</strong>-X has become a strong biology-based regenerative agriculture solutions company covering a range of<br />

applications. Investors, entrepreneurs, farmers, and consumers – all stakeholders – only together can we<br />

build a bridge into the future that is more food secure and environmentally sustainable.<br />

Cofounder & CEO

3<br />

<strong>2021</strong> Highlights<br />



Directly impacted<br />

+10,000<br />

agriculture family<br />

members<br />

Increased women<br />

In coffee associations<br />

by<br />


4<br />

<strong>Impact</strong> Farming<br />

<strong>Shared</strong>-X’s regenerative agriculture companies are taking<br />

aim at the traditional farming model and catalyzing a global<br />

<strong>Impact</strong> Farming movement, in a way that generates<br />

attractive investor returns, while at the same time lifting<br />

smallholder farming communities out of poverty and<br />

positively impacting ecosystems more broadly.<br />

In <strong>2021</strong>, <strong>Shared</strong>-X has completed the acceleration of its<br />

four fundamental companies, which employ <strong>Impact</strong> Farming<br />

and regenerative agriculture principles.<br />

Functional<br />

Foods<br />

Fresh<br />

Produce<br />

Medicinal<br />

Botanicals<br />

A Year In Review<br />

Up to 30%<br />

Increase yield from<br />

biostimumlant<br />

trials<br />

240%<br />

Increase in coffee<br />

smallholder<br />

farmers’ land (ha)<br />

Hub farms are the backbone of<br />

the <strong>Impact</strong> Farming model and<br />

offer a practical laboratory for<br />

new discoveries and a proof of<br />

concept of its innovative<br />

techniques to increase yields.<br />

In <strong>2021</strong> <strong>Shared</strong>-X businesses<br />

have grown farm operations to<br />

process larger volumes of crops,<br />

improve transparency and<br />

traceability, and update<br />

certifications. All hub farms are<br />

now certified organic.<br />

<strong>Shared</strong>-X has adhered to the Global<br />

<strong>Impact</strong> Investment Network (GIIN) IRIS<br />

(<strong>Impact</strong> <strong>Report</strong>ing and Investment<br />

Standards) system of key performance<br />

indicators. This system is being<br />

adopted as the standard for impact<br />

investment, allowing to make accurate<br />

observations across industries. <strong>Shared</strong>-<br />

X reports on 23 KPI’s from the IRIS<br />

catalogue. Of the 23, 14 correlate with<br />

the 17 Sustainable Development Goals<br />

(SDG) in the image to the right, set by<br />

the United Nations Development<br />

Programme (UNDP): 1, 2, 3, 4, 5, 6, 7,<br />

8, 9, 10, 11, 12, 13, and 15<br />

To ensure healthy lives and promote well-being: Kumara Farms in<br />

alliance with health professionals who generated medical evidence in<br />

Cannabis Tumor Treatment delivered 12 free webinars with over 100<br />

attendees from 12 countries.<br />

Promote sustained, inclusive and sustainable economic growth: In <strong>2021</strong><br />

<strong>Shared</strong>-X micro financed over 100 hectares of coffee plantations owned<br />

by smallholder farmers, ensuring the application of nutrients and the<br />

timely pruning and harvesting, enabling yield and income increase.<br />

Halt biodiversity loss: due to shade growing of coffee and protection of<br />

close to 300 hectares in our farms, the number of sightings of wildlife<br />

like sloths, monkeys, reptiles and birds has increased significantly.

Smallholder<br />

<strong>Impact</strong><br />

5<br />

<strong>Shared</strong>-X’s deep impact goes beyond traditional corporate social responsibility<br />

(CSR) measures; we strive for long term and permanent relationships, where<br />

our integrations are fundamental to the success of our partner farming<br />

communities and our shared socioeconomic success.<br />

While <strong>Shared</strong>-X farms aim to achieve the same level of access for all<br />

smallholder farmers, the methodology is distinctive to each farming operation,<br />

due to crops management, climate, and local social and environmental factors.<br />

Nampi Foods and Bananica demonstrate the ability of the <strong>Impact</strong> Farming<br />

model to adapt to smallholder farmers’ unique situations.<br />

Nampi Foods farms produce specialty cacao and coffee beans for local consumption in Peru<br />

as well as for premium export markets around the globe. While the smallholder farmer model<br />

is only beginning in cacao, the specialty coffee commercialization team counted on nearly four<br />

containers of coffee from partner farmers. Farmers delivered coffee to our hub farm and<br />

processing station, where the coffee is weighed and purchased. Once the coffee is processed,<br />

cupped by our quality specialist, and scored by customers, smallholders are paid a bonus<br />

payment for quality. This bonus payment not only ensures equitable pay, but also guarantees<br />

that smallholders earn more working with the <strong>Impact</strong> Farming model than without it.<br />

# of<br />

Farmers<br />

Association,<br />

Committee, or<br />

Cooperative<br />

Specialty Coffee<br />

Area<br />

(hectares)<br />

% of Area<br />

microfinanced by<br />

<strong>Shared</strong>-X<br />

Kg of Berries<br />

2020-<strong>2021</strong><br />

40 Flor de Café 117.75 54.50 272,558.00<br />

7 Los Pinos 21.00 9.00 40,351.00<br />

12 Copaceyba 32.20 16.00 83,957.00<br />

9 Alto Esperanza 28.75 17.50 10,494.65<br />

7 Villa María 11.00 6.50 2,545.85<br />

1 Comité los Claveles 3.00 1.00 361.60<br />

13 El Milagro 25 0.00 40,684.00<br />

9 Eñenas 20 0.00 218,465.37<br />

98 8 258.7 669,417<br />

In the <strong>2021</strong> season, 669,417 kilos of berries<br />

were purchased from 8 SHF organizations,<br />

involving a total area of 259 has, of which<br />

105 were fully and/or partly financed by the<br />

<strong>Shared</strong>-X <strong>Impact</strong> Farming Model.<br />

Smallholder Productivity: <strong>2021</strong> saw a<br />

general increase in smallholder yield. Top<br />

producers for Copaceyba Cooperative,<br />

Señor Grimaldo Huayana harvested 48.5<br />

quintals/hectare. For Flor de Café Señor<br />

Inocencio Ortiz 24.5 quintals hectare.<br />

From 2020 to <strong>2021</strong><br />

Added<br />

6new<br />

smallholder<br />

associations<br />

Grimaldo<br />


Smallholder<br />

<strong>Impact</strong><br />

6<br />

Bananica’s smallholder impact is distinct from Nampi Foods; the model aims to<br />

facilitate direct commercial access for smallholder farmers, whereas Nampi Foods<br />

continues to represent smallholders in commercial situations. As smallholder farmers’<br />

production processes and certification needs vary wildly from one crop to the other in<br />

fresh produce, Bananica is focused on consolidating information, supporting logistics<br />

operations, and offering administration services to allow smallholders greater<br />

empowerment and control over their businesses. This hands-free support for fresh<br />

produce allows Bananica to work with multiple smallholder association across a variety<br />

of crops, adjusting to their needs instead of imposing solutions.<br />

Banana Smallholders<br />

Smallholder Empowerment: in <strong>2021</strong>, due<br />

to reduction on the premium paid by Fair<br />

Trade, Bananica began empowering<br />

smallholder associations to control the<br />

entire commercialization process,<br />

including exportation. Bananica provides<br />

guidance and the use of its processing<br />

and packing facilities.<br />

Association,<br />

Committee, or<br />

Cooperative<br />

# of<br />

Farmer<br />

s<br />

Area<br />

(ha)<br />

Banana<br />

(tons)<br />

COOPABOSF 95 101.02 2620<br />

APAGA 29 84.7 2334<br />

ABOLAP 1 0 20.1<br />

COOPAPBACAO 27 70 1815<br />

TOTAL 152 255.72 1836<br />

Organizations Exporting Banana<br />

With <strong>Shared</strong>-X Support<br />

Association<br />

#<br />

farmers<br />

Area (ha)<br />

APAGA 42 113.15<br />

ASPROBO 27 69<br />

Avocado Smallholders<br />

(independent producers)<br />

# of<br />

Farmers<br />

Yield<br />

(ton/ha)<br />

Area<br />

(hectares)<br />

Avocado<br />

Production Sold<br />

(tons)<br />

17 17 54 877<br />

Long term<br />

agreement<br />

ensures<br />

sustainability of<br />

SHFs and their<br />

families<br />

Financial<br />

inclusion via<br />

loans or<br />

banking<br />

association to<br />

get the export<br />

started<br />

<strong>Shared</strong>-X logistical<br />

and commercial<br />

support enables<br />

APAGA and<br />

ASPROBO to<br />

export directly<br />

Supply chain<br />

logistics –<br />

traceability and<br />

avoid cargo<br />

contamination<br />

Relationship<br />

with suppliers<br />

of G&S in the<br />

same or better<br />

conditions than<br />

Bananica<br />

Follow-up and<br />

support in<br />

quality, process,<br />

and product<br />

certification<br />

audits<br />

Increased avocado<br />

smallholder yield by<br />

6.7%<br />

Facilitated the<br />

direct export of<br />

containers of<br />

6.5 banana/ week

7<br />

Social Investment<br />

IN <strong>2021</strong>, SHARED-X COMMITTED TO:<br />

Empowerment: A primary goal of <strong>Shared</strong>-X’s<br />

relationships with smallholders is empowerment,<br />

so they can control their own commercial and<br />

operations decisions. One great example of that<br />

success in <strong>2021</strong>, was Bananica’s assistance to<br />

smallholders such as APAGA (pictured on right),<br />

reduced fees paid to Fair Trade. Smallholder<br />

associations now control the entire<br />

commercialization process, including exportation.<br />

Bananica provides guidance and the use of its<br />

processing/packing facilities.<br />

Smallholder Women: Bridging the gender gap is<br />

fundamental to <strong>Shared</strong>-X businesses’ social<br />

impact. There is no better example of this progress<br />

in <strong>2021</strong> than Nampi Foods’ work with the El<br />

Milagro coffee growers’ association. Most of the<br />

23 Yanesha native members of the association are<br />

women (a member, Bertha Merino, is pictured on<br />

the right). In this past season, we purchased<br />

40,684 kg of berries from them. In 2022 the goal<br />

is to purchase 125,000 kg to be marketed as<br />

‘Yanesha Women Owned Coffee’.<br />

Health and Wellness: Nothing parallels the reach<br />

and impact of Kumara Farms’ Peruvian medical<br />

cannabis company, Cann Farm. Cann Farm has<br />

completed 12 free webinars to date with over 100<br />

attendees from 12 countries. However, one of the<br />

most interesting and promising social partnerships<br />

yet is with the Medicinal Cannabis Peruvian<br />

Association to offer 20 patients, which were<br />

diagnosed with autism and epilepsy, Epifractan for<br />

three (3) months free of charge.<br />

Employees Trained<br />

Subject Male Female<br />

Sexual Harassment 148 78<br />

Workers Rights 123 108<br />

Equality in the Workplace 149 79<br />

Health and Nutrition 123 108<br />

Health Insurance 150 79<br />

3,200<br />

Medical cannabis<br />

prescriptions fulfilled

Environmental<br />

8<br />

Excellence<br />

Since 2019 all Bananica and Nampi Foods farms in Northern and Central Peru have increasingly applied<br />

regenerative agriculture practices, including no tillage, native plant cover in between rows of target crop,<br />

promotion of healthy soil microorganism ecosystems by applying compost tea and use of compost to improve the<br />

organic matter content in the soil, as well as favoring the development of a healthy soil biota.<br />

With both companies’ farming operations basted in Peru, Nampi Foods and<br />

Bananica have 12 different social and environmental certifications. Not only<br />

do these certification grant access to markets and premium pricing, but they<br />

are also direct reflections of the <strong>Impact</strong> Farming value system:<br />

Regenerative agriculture businesses inherently aim to reduce<br />

carbon footprints, whether through soil rejuvenation practices<br />

using organic biostimulants and composts, or by incorporating<br />

comprehensive environmental sustainability practice throughout<br />

the value chain, from protecting natural environments on farms to<br />

packaging for end consumers. Since <strong>Shared</strong>-X operates farms on<br />

over 1,000 hectares of land and participates in every link of the<br />

value chain, while aiming to lead regenerative agriculture through<br />

the <strong>Impact</strong> Farming model, we take our carbon footprint seriously.<br />

Native Soil Cover<br />

Composting<br />

Organic Matter Content in Soil (COCOA)<br />

Sample Depth cm %<br />

Rio Santo 20 3.98<br />

Control 20 3.71<br />

Rio Santo 40 2.43<br />

Control 40 2.51<br />

Organic Matter Content in Soil (COFFEE)<br />

Sample Depth cm %<br />

Matapalo 20 7.2<br />

Control 20 4.26<br />

Matapalo 40 3.75<br />

Control 40 2.52<br />

Organic Matter Content in Soil (TREES)<br />

Name Species Number<br />

Pacae Inga spp. 2000<br />

Sangre de grado Croton spp. 50<br />

Roble Aniba spp. 200<br />

Nogal Juglans neotropica 70<br />

Wito Genipa americana 500<br />

Pumaquina Aspidosperma 20<br />

Lupuna Ceiba pentandra 50<br />

Bolaina Guazuma crinita 2760<br />

Unidentified tree species 3000<br />

TOTAL 8650<br />

Organic matter content in soil at two depths (20 and 40cm) in our<br />

coffee and cacao farms was measured. Matapalo farm, where<br />

regenerative practices have been applied since 2018, shows a<br />

clear difference compared to control soil samples taken in<br />

conventionally farmed adjacent plots.<br />

Samples taken at the Rio Santo cacao plantations are superior to<br />

its neighboring plots. It must be noted that the contents obtained<br />

are well above those of cacao plantations in 22 comparable Selva<br />

Central locations (Satipo, Pangoa, Mazamari), where the soil<br />

organic matter content average is 2.2%.<br />

Recycled<br />

30 tons of<br />

plastic sheaths<br />

into pallet corners<br />

In <strong>2021</strong><br />

100%<br />

of <strong>Shared</strong>-X farms<br />

became organic

Regenerative<br />

Agriculture Takes Off<br />

9<br />

<strong>Shared</strong>-X’s line of biostimulants, under the portfolio of iQBiotech products, aims launch and licence regenerative<br />

agriculture products, as well as grow farmers’ understanding of the benefits of biostimulants. In <strong>2021</strong>, the iQB<br />

team carried out close to 1,000 site visits with small, medium, and large agricultural businesses and independent<br />

farmers.<br />

Highlights from <strong>2021</strong>:<br />

Dealing with climate change<br />

• One way of mitigating the impact of extreme climate change uncertainty is<br />

to apply biostimulants, proven to reduce stress-induced negative effects<br />

on plants. Several trials with IQForte have shown crops to be more<br />

resistant to severe changes in temperature or water conditions.<br />

Dealing with soil health<br />

- By applying IQForte to the soil, we are increasing the amount of carbon<br />

in the soil microbiome, thus increasing, diversifying, and strengthening<br />

colonies of microorganisms. Those microbes are essential for carbon<br />

sequestration and making nutrients available for plant uptake.<br />

Field Trials<br />

Countries 8<br />

Crops 15<br />

Total area under<br />

regenerative agriculture<br />

management<br />

systems (ha) 1047<br />

57%<br />

Increase of<br />

coffee pulp recycled into<br />

compost or returned to the fields

10<br />

Leading by Sharing<br />

<strong>Shared</strong>-X believes that the best way to lead is by example. There is no better way to do that than by sharing<br />

information openly and transparently, so that the agriculture community can compete and thrive. We do not see<br />

competitors, but rather partners in achieving regenerative agriculture goals that benefit every environment and<br />

community, equitably.<br />

In <strong>2021</strong>, a webinar was conducted by Cann Farm in<br />

partnership with the Peruvian Neurology Society and<br />

featured Dr Ethan Russo, a world leading authority in<br />

cannabis. The event was attended by 500 professionals<br />

from 19 countries.<br />

<strong>Impact</strong> Farming<br />

Master Class<br />

Tony and John teamed up to give a masterclass on<br />

<strong>Impact</strong> farming and regenerative agriculture. The<br />

class was intended to give an overview of<br />

biostimulant technology and benefits of regenerative<br />

agriculture techniques.<br />

Technical Training<br />

Employees 251<br />

Bananica Banana SHF 40<br />

Avocado SHF 75<br />

Anana-X Employees 57<br />

Employees 332<br />

Nampi Foods<br />

Coffee SHf 98<br />

Cacao SHF 56<br />

Ginger 36<br />

TOTAL 945<br />

Native Community Training<br />

Nampi Foods conducts frequent technical trainings on<br />

crop management for cacao with neighboring native<br />

communities. The below photo was after a training in<br />

the cacao farm with 57 native community members.

11<br />

Looking Forward<br />

To 2022<br />

The past year has been a tremendous challenge, which the <strong>Shared</strong>-X family has met with creativity<br />

and a sense of purpose, achieving many of its goals despite such a difficult context. In the year<br />

ahead, our primary focus will be to further deploy our <strong>Impact</strong> Farming model, thus incorporating<br />

more smallholder farmers and keeping up the pace in the development of our operations with<br />

regenerative agriculture and carbon sequestration. Some key milestones for <strong>Shared</strong>-X’s regenerative<br />

agriculture business are as follows:<br />

• Expand our line of biostimulant solutions and organic inputs to 9 countries, including the US.<br />

• Perform assays in new crops, with emphasis on our core production: coffee, cacao, banana and<br />

pineapple. Our R&D efforts should lead to yield increases in these crops from 5 to 30% and to<br />

further breakthroughs to improve our regenerative agriculture approach.<br />

• Commit to calculate our carbon footprint and to develop mechanisms to increase carbon<br />

retention through our agricultural practices, thus halting deforestation by our smallholder<br />

associates and reducing our Scope 1 and 2 emissions.<br />

<strong>Shared</strong>-X’s independently operating businesses are aiming for specific impacts within their sector.<br />

Some highlights to look forward to in 2022 are the following:<br />

Nampi Foods – specialty and functional superfoods:<br />

• Increase our exportable coffee production purchased from our smallholder farmer associates to<br />

11 containers.<br />

• The goal is to purchase 125,000 kg to be marketed as ‘Yanesha Women Owned Coffee’.<br />

Bananica – organic fresh produce:<br />

• Incorporate new avocado farmers, totaling 110, with a cultivated area of 330. This will result in a<br />

3-fold increment in our exports.<br />

• Increase our own blueberry production by 85 hectares to a total of 100 hectares.<br />

Medical Botanicals:<br />

• Double the number of patients and doctors reached.<br />

• Fulfill more than 5,000 medical prescriptions.<br />

In addition to these goals, and with a better understanding of the Covid threat, <strong>Shared</strong>-X will reinitiate<br />

its training sessions for smallholder farmer communities. We expect to consolidate our<br />

relationship with smallholders, who supply lumber from certified forests to our sawmill in Puerto<br />

Bermudez, and incorporate them into a model similar to our coffee program.<br />

<strong>Impact</strong> Manager

<strong>2021</strong> <strong>Impact</strong> <strong>Report</strong><br />

This report was created by <strong>Shared</strong>-X LLC to include its affiliated and subsidiaries.<br />


2925 Woodside Rd, Woodside, CA 94062, USA<br />

www.shared-x.com<br />

Every photo in the <strong>2021</strong> <strong>Shared</strong>-X <strong>Impact</strong> <strong>Report</strong> was taken by an employee or contractor on or near properties we own and farm. We are extremely proud of these images,<br />

which attempt to show the amazing work done alongside smallholder farmers and their communities. While we reserve the rights to each photo, we share this report publicly.

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