ESG Report

At Green Team, we strive to minimize our environmental impact by adopting an "as little as possible" approach to farming. We grow our trees with minimal input, ensuring that quality is never compromised.

• On a larger scale, this involves carefully selecting and testing land for plantations, prioritizing light, sandy soils that naturally limit weed growth.

• On a smaller scale, we focus on optimizing resource use, such as fuel efficiency, while implementing eco-friendly practices wherever feasible.

We are committed to reducing our use of fertilizers. While fertilizers are not essential for tree production, they do enhance the green color of Christmas trees — a feature valued by many customers. Therefore, we actively explore natural fertilizer alternatives and assess their effectiveness.

To prevent overuse, we apply specialized fertilizers only when necessary. We recognize the potential for further improvements in low-impact farming and remain dedicated to exploring and implementing sustainable solutions. Our continuous search for innovative farming techniques ensures that we balance environmental responsibility with production efficiency.

Biodiversity across Europe is under increasing pressure, with insects and other invertebrates among the most affected species. As stewards of large agricultural areas, we have the opportunity to make a meaningful contribution to addressing this urgent challenge.

One of our key initiatives focuses on creating habitats that support pollinators and other wildlife:

• In 2024, we began installing insect hotels across our fields to provide safe havens for beneficial insects.

• We plant wildflower strips annually, covering at least 5% of our total plantation area. In 2024, we sowed 108 hectares of wildflowers, providing essential nourishment for bees, butterflies, and other pollinators.

• To further support biodiversity, we delay mowing tram lines until August, ensuring that pollinators have undisturbed access to food during their most active periods.

When it comes to pest control, we take a precautionary approach:

• We only spray when there is a confirmed threat to our trees.

• To minimize harm to beneficial insects, all applications are carried out in the evening, when pollinators are less active.

Our plantations serve as a diverse and thriving ecosystem, supporting:

• 162 plant species.

• Larger mammals such as wolves and wild boar, which benefit from the tranquility of our fields.

Compared to conventional crops like corn, our plantations act as an oasis for wildlife, fostering a balance between agricultural production and nature conservation.

At Green Team Group, we cultivate all our trees on agricultural land, transforming monoculture fields into thriving ecosystems for wildlife. We do not plant Christmas trees in forests, Natura 2000 areas, or other ecologically sensitive habitats, ensuring that our operations align with responsible land management practices.

A key aspect of sustainable farming is the continuous integration of site-specific knowledge and practical experience into future management strategies. To uphold this commitment, we implement the following practices:

• Soil management and maintenance plans

• Integrated pest management

• Risk assessment management

• Site management and conservation plans

• Risk assessment for each field prior to planting

All sites registered for GLOBALG.A.P. certification, including rented land, structures, and equipment, undergo a thorough risk assessment to determine their suitability for production. These assessments consider potential physical, chemical (including allergens), and biological hazards, site history, and the impact of planned activities on surrounding landscapes.

Each site is regularly inspected, maintained, and reviewed whenever conditions change, or at least annually — whichever occurs first.

Sustainable farming and environmental stewardship go hand in hand. Preserving wildlife and landscapes is a priority, as biodiversity enhances both species richness and land stability. Through responsible practices, we ensure that our operations support and sustain the natural environment.

At Green Team, we prioritize the use of renewable and sustainable resources, continuously seeking ways to minimize our environmental impact while maintaining high product quality.

Plastic Reduction Efforts

One of the key areas where we have made tangible progress is reducing plastic consumption in pot-grown tree production:

• In 2024, through collaboration with partners, we introduced thinner yet equally durable pot bags, leading to a 536.6 kg reduction in plastic usage.

• By working closely with key customers, we successfully eliminated plastic pot covers, saving 10.64 tons of plastic across different product sizes.

• We encouraged the transition away from plastic bags for potted trees, resulting in an additional 1.43 tons of plastic saved.

Material Reuse & Circular Economy

Beyond plastic reductions, we continue optimizing our material reuse processes:

• Through improved logistics and recovery systems, we reuse wooden pallets, contributing to 45.08 tons of wood saved.

• We are actively testing sustainable netting solutions for Christmas trees, focusing on nets made from up to 100% recycled plastic, reinforcing our commitment to a circular economy and reducing reliance on virgin materials.

Peat Reduction & Alternative Substrates

Optimizing peat consumption remains a priority in our sustainability efforts:

• Since August 2024, we have replaced 10% of all peat with compost, marking a significant step in reducing our dependence on peat-based substrates.

• We continue testing peat-free and peat-reduced alternatives, including 100% compost-based media and blended solutions from different suppliers.

• A reduction in pot size to 6.5L has further decreased overall peat usage.

• While early trials of peat-free substrates have presented challenges, such as higher plant mortality rates and reduced growth, we remain committed to identifying effective, sustainable alternatives.

Sustainable Packaging & Materials

To ensure responsible material use across all areas of our business, we have also taken steps to improve packaging sustainability:

• All cardboard used for boxing is fully recyclable.

• All wood used for pallets is PEFC-certified (PEFC/09-31-135), ensuring responsible forestry practices.

By continuously evaluating and adopting sustainable materials, Green Team remains committed to reducing its environmental footprint while maintaining the highest standards in Christmas tree production.

At Green Team, we are committed to making our production as environmentally friendly as possible, applying treatments only when absolutely necessary for tree growth.

We continuously explore alternative methods while ensuring compliance with all applicable laws and EU regulations.

To manage weeds while minimizing environmental impact, we are actively searching for glyphosate-free alternatives and rigorously testing their effectiveness. In the meantime, we carefully monitor each field to determine the most appropriate and sustainable weed control approach.

At Green Team, we recognize the importance of minimizing our carbon footprint and take active steps to reduce CO₂ emissions across our entire value chain — from tree cultivation to transportation. As part of these efforts, we not only focus on reducing emissions but also on understanding the broader environmental impact of Christmas tree production.

While holiday traditions such as festive meals and gift-giving contribute significantly to CO₂ emissions, Christmas trees play a unique role in carbon sequestration. As they grow, trees naturally absorb CO₂ from the atmosphere. Although some emissions are generated during production, a typical Christmas tree removes approximately 0.6 kg of CO₂ by the time it reaches the point of sale, helping to offset its overall environmental impact.

Life Cycle Assessments (LCAs) of Danish-grown Christmas trees indicate that, when considering the entire production process — including fertilizers, transportation, and packaging — the net climate impact can be neutral or even positive. However, consumer transportation remains a significant factor in the tree’s overall carbon footprint.

To further reduce our environmental impact, Green Team continuously evaluates and implements measures to optimize sustainability, including:

• Prioritizing locally grown trees whenever possible to minimize transport emissions.

• Transitioning to renewable energy sources, such as wind and solar, to power our operations.

• Optimizing logistics and transportation efficiency to reduce unnecessary emissions.

• Exploring innovative methods to further lower the carbon footprint of Christmas tree production.

Through these efforts, we remain committed to responsible and environmentally conscious tree production, ensuring that our operations positively contribute to sustainability while delivering high-quality Christmas trees to our customers.

At Green Team, we are committed to reducing plastic use in our operations, particularly in tree netting and labeling. All trees require netting before shipment, and across the European Christmas tree industry, this results in the use of vast amounts of plastic netting each year — equivalent to circling the planet multiple times. To minimize our impact, we are actively testing alternatives, including nets made from cellulose, aiming to find a more sustainable solution without compromising functionality.

Similarly, we continue to explore more eco-friendly labeling options. By working with customers to transition from traditional hanging labels to alternatives like Tyvek, we have already achieved a noticeable reduction in plastic usage. Additionally, each season, we test new biodegradable label options in search of a viable replacement for plastic labels. However, challenges such as durability and weather resistance persist. Despite these limitations, we remain committed to trialing new materials and advancing technological solutions to find a long-term, sustainable alternative.

Growing a Christmas tree is a long-term process that takes at least 12 years. Throughout this period, we focus not only on tree cultivation but also on enhancing the surrounding natural habitat. Our fields, often converted from traditional farmland, serve as valuable ecosystems that support a diverse range of wildlife. Similar to pioneer forests, Christmas tree plantations offer food, shelter, and sunlight, making them richer in biodiversity compared to conventional agricultural lands.

The Growth Cycle

• Year 1: Seeds are collected from seed orchards and sown to produce seedlings.

• Years 2-3: Seedlings are transferred to plant beds, where they continue to develop.

• Year 4: The young trees are planted in designated locations using GPS-coordinated precision planting.

• Years 5-8: The trees grow with minimal intervention. A limited amount of fertilizer is applied only as necessary to control competing weeds.

• Years 9-10: The trees are shaped through pruning and thinning to ensure quality growth.

• Years 11-12: The harvest period begins, with approximately 80% of the trees being cut. The remaining 20% are mulched into the soil, naturally enriching it for the next planting cycle — this is the only time the soil is actively disturbed during the entire process.

By maintaining this cycle, we balance responsible tree production with ecological stewardship, ensuring that each generation of trees contributes to a healthier environment.

At Green Team, we actively monitor the carbon footprint of our tree deliveries, ensuring that we account for emissions throughout the entire transportation process. While standard industry practice often focuses on direct fuel consumption (Tank-to-Wheel), we take a broader approach by considering the full Well-to-Wheel impact.

To minimize emissions, we continuously optimize our logistics, ensuring that trucks are loaded as efficiently as possible — either fully packed or co-loaded with other goods. We also work closely with our transport partners, prioritizing those who share our sustainability values and are committed to improving their environmental performance. Together, we explore opportunities for further reductions, including:

• Assessing whether train transport could be a viable alternative to road freight.

• Monitoring advancements in electric vehicle infrastructure to determine when electric trucks become a practical option.

• Reducing reliance on fossil-fuel-powered trucks.

• Using GPS tracking to avoid unnecessary mileage and optimize routes.

Sustainability at Green Team extends beyond production and transportation — it is integrated into every aspect of our organization, including administration. We continuously work to minimize our environmental impact by implementing practical, everyday solutions that contribute to a more sustainable workplace.

For instance, we reduce paper waste by following a "no-print" principle whenever possible and, when printing is necessary, we use recycled paper. Office supplies are selected with sustainability in mind, avoiding plastic whenever feasible.

To conserve resources, we have installed water-saving toilets and sensor-activated faucets, while our lighting systems operate with sensors and timers to minimize electricity consumption. In our canteens, we prioritize ecological choices, and we consistently look for ways to improve the sustainability of our waste management practices.

Additionally, we take steps to limit business travel, reducing the number of flights taken whenever possible. Through these and other ongoing efforts, we aim to create a more environmentally responsible workplace while supporting our broader sustainability mission in Christmas tree production.

At Green Team, our commitment to responsibility goes beyond environmental sustainability — we also prioritize ethical business practices, employee well-being, and strong stakeholder relationships. We strive to ensure that Green Team is not only a great place to work but also a safe and fair environment, where high standards of integrity and accountability guide our daily operations.

A key part of this commitment is employee well-being and workplace safety. We are dedicated to providing a safe and supportive work environment, promoting a healthy work-life balance, and conducting regular employee surveys to encourage open discussions on performance, professional growth, and workplace culture. Workplace safety remains a top priority, with stringent accident prevention measures in place, including the mandatory reporting of all incidents and near-misses. We take pride in our outstanding safety record, with no reported workplace accidents in over a decade.

At the core of our operations are ethical business practices. Green Team upholds rigorous labor and ethical standards based on the ETI Base Code, ensuring fair treatment and rights for all employees. Our commitment to responsible labor practices is reinforced through internationally recognized certifications such as GRASP and SMETA, which reflect our dedication to ethical sourcing and supply chain transparency. To further strengthen accountability, we have implemented a confidential whistleblower procedure, allowing employees to report concerns anonymously, ensuring that any potential issues can be addressed promptly and responsibly.

Maintaining strong stakeholder relations and compliance is also fundamental to our approach. We work closely with subcontractors and partners to uphold shared commitments to quality and ethical responsibility. Our compliance efforts extend beyond regulatory requirements, as we often exceed mandatory standards to ensure best practices across our operations. Additionally, we have strict procedures in place to prevent the unauthorized use of our vehicles for activities such as human trafficking.

By continuously improving our policies and practices, we aim to set high industry standards, demonstrating leadership in corporate responsibility while fostering a workplace culture built on trust, safety, and ethical integrity.

As caretakers of large plantations, we recognize our responsibility to protect the cultural and historical heritage found on our land. Several sites under our care contain ancient monuments and other significant relics, which we preserve in accordance with local regulations. Ensuring the protection of these landmarks is an integral part of our commitment to responsible land management.

Transparency and accountability are fundamental to our operations. We are committed to maintaining the highest ethical standards across our value chain, actively working to prevent corruption, tax avoidance, and other financial misconduct.

To ensure strict financial control, we utilize advanced management information systems that provide full oversight of our processes. Our no-cash policy minimizes the risk of fraud, and we conduct regular monitoring and audits to identify and prevent any irregularities. By upholding these standards, we reinforce trust with our stakeholders and set a strong example within our industry.

At Green Team, we take a structured and responsible approach to waste management, ensuring that our processes go beyond regulatory requirements. Our waste management system is designed to minimize environmental impact through proper sorting, handling, and disposal.

We employ a variety of collection methods based on the type of waste — whether hazardous or non-hazardous — while also considering reusability and sustainability. This aligns with our broader commitment to reducing negative environmental impact and continuously exploring more sustainable production methods.

In managing waste, we collaborate with industry experts and local authorities to ensure compliance and best practices. Waste reduction remains a key focus across all areas of our operations, reinforcing our commitment to responsible resource management.

At Green Team, our greatest asset is our people. We are an international team, bringing together colleagues from eight different countries, who speak eight different languages.

This international character is reflected in the way we work — combining local expertise with global perspectives. From our plantations to our offices, this mix of cultures, skills, and experiences helps us better understand our markets, serve our customers, and develop as a company.

At Green Team, product quality is at the core of our business. To ensure that our standards meet the highest expectations, we have developed one of the most advanced quality control systems in the industry. Our approach combines technology, transparency, and external validation, allowing us to deliver consistently high-quality products.

We have designed custom quality control applications, enabling us to monitor and document quality parameters with precision. Additionally, we provide our customers with detailed quality descriptions, ensuring full transparency in our deliveries. To further reinforce our commitment, we conduct recurring external quality checks, ensuring that quality is assessed not only by our internal teams but also by independent experts.

In the past year alone, we carried out over 7,000 quality inspections, covering all relevant parameters. If any deviation from the agreed quality standard is detected, corrective actions are immediately implemented to resolve the issue and maintain our high standards.

By continuously refining our quality control processes, we ensure that our customers receive the best possible products — delivered with reliability, consistency, and transparency.

At Green Team, our commitment to quality, sustainability, and ethical business practices is backed by internationally recognized certifications. We are certified by:

• ETI Base Code

• PEFC/09-31-135

• ISO 28000:2022

• GlobalG.A.P.

• SMETA

• GRASP

• MPS-ABC

• Naturbaum Siegel

Achieving and maintaining these certifications is a challenging task, as it requires compliance with a significant number of control points. However, we do not pursue certifications for prestige; we do it to document our efforts and demonstrate accountability — to the environment, our employees, and the communities we operate in.

These certifications serve as concrete proof that we uphold the highest industry standards, and in many cases, we have been first movers in implementing new certification programs. They require regular self-assessments, internal audits, and management reviews, ensuring that our commitment to excellence is continuously validated by independent organizations.

By meeting these rigorous standards, we reinforce our professionalism, integrity, and leadership within the industry — ensuring that Green Team not only talks about sustainability but actively delivers on it.