LEO HLDG : Full Year 2021 Sustainability Report

Sustainability Report January - December 2021

TABLE OF CONTENTS

Co-CEO's letter 4

About Local Bounti 5

Local Bounti's Materiality-Based Approach To ESG 12

Boundaries of our Sustainability Reporting 13

Overview of our Material ESG Topics 15

United Nations Sustainable Development Goals 18

REDEFINING THE CONTROLLED ENVIRONMENT AGRICULTURE 20

SEGMENT - Turn a New Leaf™

• 1. Transforming the Production of Leafy Greens 21

• 2. Minimizing the Environmental Impacts of Controlled 24

  Environment Agriculture (CEA)

• 3. Dramatically Reducing Waste in the Leafy Greens Segment 32

LIVING OUR VALUES 35

• 4. Transforming Agricultural Employment 36

• 5. Developing and Supporting Local Communities 39

• 6. Fostering Diversity, Equity, and Inclusion 41

OPERATING OUR BUSINESS RESPONSIBLY 43

• 7. Upholding Effective Corporate Governance 44

• 8. Ensuring High Standards of Ethics and Integrity 46

• 9. Managing Enterprise Risks 48

APPENDIX 49

A Content Indexes 50

GRI Index 50

SASB Index 55

B Sustainability Data Tables 56

C About This Report 59

D End Notes 60

Local Bounti CEOs' Sustainability Letter

Conventional agriculture has been feeding the world for hundreds of years, yet given the negative impacts of climate change, it is now struggling to keep pace. Add to that the COVID-19 pandemic, and an already stressed food supply system is experiencing even more pressure. Looking ahead, it is estimated that the world will require 60% more food in just 30 years. Sustainability has emerged as a GLOBAL imperative, and when it comes to agriculture, it is clear we must find ways to do better.1

When we first began evaluating the Controlled Environment Agriculture (CEA) industry, we were convinced it was an important technological breakthrough that would impact the food supply system in a positive way, and so we set out to invest in an existing CEA business. We recognized that the benefits of growing produce with no herbicides or pesticides, 90-95% less land and water requirements, year-round production, and many other advantages, positioned CEA as a clear disruptor.

We performed extensive due diligence, searching high and low for a business that was set up to succeed over the long term in what we believe is a high growth, global, commodity-based, capital-intensive business model. The only issue was, we could not find an existing business that we felt checked all the boxes. That was our "aha moment" when we looked at each other and said, "it's time to start a business" - and soon after, Local Bounti was born. Three-and-a-half years later, we could not be prouder ofLocal Bounti and what our team has accomplished in this short period of time.

From inception, we have placed sustainability as a top business objective - it's built into our DNA. We invented our breakthrough Stack & Flow Technology™ with the goal of improving our unit economics AND our sustainability metrics. We knew CEA was a sustainability winner when compared to conventional agriculture, but that is not good enough for us. We want to be the leader in objective sustainability performance when compared to other CEA companies and field grown agriculture - a goal we believe our business model and proprietary technology enables us to achieve.

As part of our sustainability commitment, we are devoted to complete transparency, with no "greenwashing" or selective data reporting. Top to bottom, we focus on sustainable Environmental, Social, and Governance (ESG) guidelines in all facets of our business. We are alsodedicated to integrating our ESG and SEC reporting, and aligning our ESG disclosures, with external frameworks such as the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI). To the extent possible, we will participate in these organizations to help drive meaningful change.

Local Bounti has our sights set on being a leader in the global CEA industry. At the same time, we are a LOCAL business. We invest in local communities, build local facilities, hire local talent, and deliver fresh, delicious and sustainable products to families in the local communities we serve. We are committed to always being rooted in local.

Being the CEA sustainability leader is undoubtedly a challenge, yet one the entire Local Bounti team is excited to deliver upon.

Sincerely,

Craig Hurlbert and Travis Joyner

Co-Founders and Co-CEOs

About Local Bounti

Local Bounti is a disruptive indoor agricultural technology company that is redefining the future of farming and transforming the production and delivery of local, fresh, and sustainably grown living lettuce, herbs, and loose-leaf lettuce across the U.S.

Founded in August 2018 and headquartered in Hamilton, Montana, Local Bounti is a Controlled Environment Agriculture (CEA) company that uses a unique, proprietary Stack & Flow Technology™ - a hybrid of vertical and hydroponic greenhouse farming - to grow healthy food sustainably and affordably.

Through this process, the company can produce its products in an environmentally sustainable manner that increases harvest efficiency, limits water and land requirements by up to 90 percent, and reduces the carbon footprint of the production and distribution process.

The environmental greenhouse conditions in Local Bounti's facilities help ensure the nutritional value and taste of its products, which are non- GMO and pesticide and herbicide-free. Our first facility (Montana Facility) commenced operation in 2020 and is in Hamilton, Montana, USA. We have several facilities in development; our Washington Facility, located in Pasco, Washington, broke ground this year.