Page 23 - Chicago Market Community - Action Plan

RECOMMENDED INITIATIVES

Environment. Questions evaluate how the company's practices impact environmental systems - including
climate, water, land, and biodiversity - from a direct operation and supply chain standpoint. Chicago Market is
well positioned in many sub-categories, but it is challenging to ascertain an accurate score without empirical
utility data. If the Gerber Building achieves LEED or WELL certification, it will undoubtedly contribute to
additional points in this category. Water should be a focus area given the retail grocery requirements and
agricultural production.

Customers. The final section measures the company's ability to positively impact its customers' well-being
through its products and services, respond to feedback, and protect their privacy. Limited points are available
in this category, and Chicago Market projects to score well, so it is not a primary area for improvement.

The SAP recommendations address many areas for improvement and, if implemented, should easily account
for the necessary points to achieve B Corp Certification.

Cost & Economic Impact

For most for-profit companies, the barrier to achieving B Corp status comes with shareholder consensus-
building and significant administrative costs to modify its governance structure to be more mission-driven.
Additional operational changes, business model modifications, and capital investments may also be necessary
for companies to meet the 80-point certification threshold. Fortunately, Chicago Market's cooperative
structure and triple-bottom line model mean that many legal, disclosure, and governance structures are
already in place.

While some costs will be associated with implementing the following recommendations, they are primarily
intended to be cost-saving strategies that will also help meet the B Corp point threshold. Those expenses
should not be viewed as costs to achieve B Corp but as necessary investments to attain Chicago Market's
vision, regardless of certifications. From that standpoint, the actual incremental cost of B Corp certification
will come as annual fees.

There is a non-refundable, one-time fee of $250 for the initial submission. The annual fee for a company with
Chicago Market's expected gross yearly revenue (between $500k and $4.9M) is $2,000 per year. Fortunately,
these costs may be offset by the increased customer loyalty, market differentiation, and improved appeal
to investors and philanthropies that come with the designation (Cheng, 2023; Walden University, n.d.). In
the end, the direct cost of B Corp certification can be more than justified by the benefit it provides.

CHICAGO MARKET SUSTAINABILITY ACTION PLAN 23