Appendix A: International Reporting Standards

The Global Reporting Initiative (GRI) develops globally applicable Sustainability Reporting Guidelines for voluntary use by organizations worldwide. (www.globalreporting.org) As a member of GRI, we support this effort to foster corporate accountability, comparability, and transparence.

In 2006, GRI revised their standards to develop a “C” applicability level that is appropriate for smaller companies which we followed this year. The following information indicates how we have met the required Profile Disclosure elements and topic-related performance indicators for this C level.

Materiality: We consider our product design and packaging work, as well as our sourcing and supplier engagement efforts to be material to our company. Consistent with our commitment to environmental stewardship, our varied initiatives to reduce our environmental footprint (within our office, through our approach to logistics, our carbon accounting work) are material as well. As we are committed to collaborating with others to create positive change, our efforts to engage our customers and consumers are also material. Finally, as a privately-held business that believes strongly in corporate accountability, a discussion of our economic performance, donations, and workforce are also necessary components of this report.

This report is only available on the internet in an effort to save paper and to facilitate access to the many links that will help readers pursue particular topics further.

GRI–C Standard Elements

Profile Disclosures

Standard Disclosures

1.1 CEO Letter: A few more words from Seventh Generation’s President and CEO (in 2008), Jeffrey Hollender, page 8. The mandate in our company’s name — that we, “Consider the impact of our decisions on the next seven generations”, underpins all we do as well as the strategic goals we set. Short-term: The Executive Summary details our goals to: eliminate 1,4-dioxane from our products; improve our carbon footprint, particularly related to transportation; and increase the recycled content of our packaging. We intend to achieve our environmental goals while growing 20% in each of the next two years, despite a down economy. A priority in moving forward will be improving work-home balance within our community. Medium-term: I see us playing a more active role in changing our industry, challenging the business community to move more rapidly toward sustainability, and in effecting policy change at the national level on climate change, safer ingredients, and other areas of strategic interest to our company.

Longer-term: While our global imperatives and the long-term goals in the Executive Summary guide us, we can’t create the change we seek by acting alone. I hope that we will inspire others to shift from a “for-profit” to a “for-purpose” business model, embracing the belief that we must hand down to the next seven generations a world more restored and more just than then the one we abide in today.

Our achievements and setbacks are detailed thoroughly in our report (see the Executive Summary) but on a personal level, I’m disappointed that we have not yet eliminated 1,4-dioxane from our products and expect that we will succeed in this area in 2009. I’m most proud of the fact that we stayed true to our core purpose during a year of fantastic growth, proving that doing good is good for business.

Our relationships and collaborations, whether they are with our suppliers or independent associations, are all marked by a dedication to a shared purpose. We’re not in this alone. We have exceptionally dedicated employees and an external network of committed partners. I’m humbled to be in company with such extraordinary power and talent as we proceed, step by step, on the path before us.

—Jeffrey Hollender, president and co-founder, Seventh Generation