2025 Sustainability Report

Commitment to Family Farms

Supporting local agriculture and responsible farming practices

Schuman Cheese is deeply committed to supporting family-owned dairy farms and sustaining local agriculture in the communities where we operate. The milk used to produce our cheeses at our Turtle Lake, Wisconsin facility is sourced primarily from three family-owned farms located within one hour of the plant. This close proximity enables strong partnerships with our farmer partners, supports local agricultural economies, and ensures high milk quality through shorter transport times. It also enhances traceability and transparency across our dairy supply chain.

All three farms are certified under the FARM (Farmers Assuring Responsible Management) Animal Care Program, reflecting our shared commitment to responsible farming practices and high standards of animal care.

Farm Spotlight: Norswiss Farms

On-site innovations to generate renewable energy and reduce emissions

Norswiss Farms, one of the family-owned farms supplying milk to our Turtle Lake facility, demonstrates a strong commitment to sustainability through on-farm innovation and long-term stewardship. The farm operates an anaerobic digester to manage manure responsibly and generate renewable energy, reducing methane emissions and supporting nutrient management. On-site solar panels further contribute to renewable energy use.

Sustainable Packaging

Identifying smart alternatives to reduce material use and improve recyclability

Our packaging engineering and procurement teams are proactively preparing for emerging Extended Producer Responsibility (EPR) requirements while advancing packaging solutions that support both our sustainability commitments and our customers’ goals.

Throughout the year, the teams focused on research and development initiatives aimed at reducing material use, improving recyclability, and identifying more sustainable alternatives across our portfolio. These efforts include lightweighting projects that lower material consumption, redesigning components to align with established recycling streams, and evaluating next‑generation materials with reduced environmental impact.

By staying ahead of regulatory changes and collaborating closely with suppliers and customers, we continue to strengthen the sustainability of our packaging footprint and work towards packaging circularity.

Food Waste Reduction

We’ve recovered 456,290 Pounds of food through inventory risk reduction

Our inventory risk reduction program continues to play a key role in preventing food waste across our operations. By identifying high‑risk inventory that still meets our strict quality and safety standards, the team works proactively to find recovery pathways before product is lost. Thanks to the dedication and cross‑functional coordination of our inventory risk team, Compared to 2024, our team increased food recovery by 11%!

Carbon Emissions

To align with upcoming regulations and support, we are transitioning our carbon accounting from a calendar year reporting period to a fiscal year reporting period. This transition resulted in a three-month overlap of last year’s reported emissions and this year’s reported emissions, from October 2024 through December 2024. This year’s reported emissions cover October 2024 through September 2025. Additionally, we discovered scope 1 and 2 emission sources that were not accounted for in last year’s inventory. These emissions accounted for less than 0.4% of this year’s inventory. In fiscal year 2025, we produced 18.5 kilotons of CO2e in scope 1 and 2 emissions.

Our maintenance teams have been hard at work implementing preventative maintenance and improving our refrigeration systems. Compared to 2024, our emissions from refrigerants significantly decreased.

58% Reduction of Emissions from Refrigerants

Continuous Improvement

174,364 Pounds of yield improvement through cross-functional collaboration

At our Elgin facility, our continuous improvement and operations teams collaborated on a series of yield enhancement initiatives spanning multiple production lines. By strengthening process controls, refining equipment performance, and reducing variability across key steps in production, the team successfully increased usable product output and prevented high‑quality cheese from becoming waste or downcycled. These efforts support our sustainability goals and commitment to operational efficiency.

Industry Collaboration

We work together with key stakeholders to develop sustainable solutions

Industry collaboration is critical to addressing shared environmental challenges at scale. In 2025, we strengthened our sustainability strategy by joining the Dairy Sustainability Alliance, a national, multi-stakeholder collaborative. Membership in the Dairy Sustainability Alliance enables us to actively engage with peer companies, producers, and other value-chain partners to advance aligned environmental priorities, share best practices, and contribute to industry-wide solutions.

We also participated in Supplier LOCT, engaging directly with customers and value chain partners through a collaborative, industry-led framework. This participation supported alignment on climate expectations, increased transparency, and fostered constructive dialogue on shared sustainability priorities, helping advance more consistent and coordinated climate action across the value chain.

Our Elgin facility is working with Cascade Energy to improve energy efficiency through targeted optimization of compressed air and refrigeration systems. This multi-year collaboration applies technical assessments and industry-specific expertise to reduce energy intensity, enhance system performance, and support our goal of scope 1 and 2 greenhouse gas reduction.

Collaboration Spotlight: Energy Efficiency

Partnering with energy management experts to meet our environmental targets

Introducing Ivy’s Reserve

Vintage cheddar crafted with a commitment to environmental stewardship

We are proud to introduce our new partnership with Ivy’s Reserve, a premium vintage cheddar crafted by Wyke Farms, a family-owned cheesemaker with more than 160 years of heritage. Ivy’s Reserve is produced following traditions passed down through generations, including aging the cheese under wood for up to 18 months to develop its signature sweet, nutty, and complex flavor profile.

Ivy’s Reserve is an especially meaningful addition to our portfolio due to our shared commitment to responsible production and environmental stewardship. Sustainability principles have guided the impressive legacy of Wyke Farms, with a commitment to working hand in hand with nature, respecting the land, and honoring Ivy’s vision for sustainable agriculture.

Ivy’s Reserve follows a circular approach designed to minimize waste and resource use. Energy efficiency, heat recovery, and advanced water filtration systems are integrated throughout production. Water is recycled and reused where possible, reducing demand on local supplies. Wyke Farms is committed to renewable energy, with on‑site solar generation and an anaerobic digester that converts farm and dairy by‑products into biogas, significantly reducing carbon emissions.

These values of quality, stewardship, and respect for the environment align closely with our sustainability priorities as we continue to expand our portfolio responsibly.