Supply Chain Sustainability Spotlight.

Balchem remained focused on securing reliable raw materials while upholding high standards for ethical conduct, environmental stewardship, and supply chain resilience. The company emphasized long-term supplier relationships and disciplined risk management. Close collaboration with our suppliers enabled us to navigate disruptions, explore alternative sourcing options where appropriate, and maintain continuity of supply without compromising our values. Our efforts are grounded by our commitment to transparency, integrity, and accountability across the supply chain.

Responsible sourcing remained a cornerstone of our sustainability strategy in 2025. The company continued to advance its responsible sourcing program to strengthen supply chain resilience and improve visibility into supplier practices. 30% of Balchem’s suppliers are now fully linked in the Supplier Ethical Data Exchange (“Sedex”), enhancing transparency and providing deeper insight into labor practices, environmental performance, health and safety, and business ethics. Sedex engagement facilitates the identification of potential risks, allows for effective prioritization of engagement areas, and promotes ongoing improvement through collaboration with suppliers.

Balchem’s Supplier Code plays a central role in communicating our expectations related to ethics, human rights, labor standards, environmental responsibility, and legal compliance. All suppliers are required to adhere to the Supplier Code or demonstrate alignment through equivalent policies and practices, reinforcing a responsiblymanaged supply base. Suppliers must comply with all anti-corruption laws, including the Foreign Corrupt Practices ACT (FCPA), and are forbidden from offering kickbacks.

We also made measurable progress in advancing our sustainable sourcing outcomes for key commodities. For example, in 2025, 43% of all cocoa purchased was sourced from Rainforest Alliance–certified suppliers, supporting programs that promote sustainable farming practices, protect ecosystems, and reinforce fair labor standards. Similarly, Balchem continued its commitment as a member of the Roundtable on Sustainable Palm Oil (“RSPO”), sourcing 100% of its palm- and palm-kernel-based ingredients from RSPO-certified material.

Together, these efforts reflect our integrated approach to responsible materials sourcing, globally; one that balances environmental stewardship, ethical supply chain management, and long-term business resilience amid a dynamic global operating environment.