PEI Cannabis 2023 Annual Report

STRATEGIC TARGET • CORPORATE SOCIAL RESPONSIBILTY

STRATEGIC GOAL

To be an excellent corporate citizen with high brand equity achieved through the promotion of responsible cannabis consumption, ongoing stakeholder engagement, and internal CSR campaigns.

CORPORATE OBJECTIVES

1. To build mutually beneficial stakeholder partnerships that align with the PEICMC’s objectives; 2. Ensure cannabis is retailed in a responsible fashion that is educational in nature and aligns with the promotional restrictions; 3. Continuously improve the PEICMC’s reputation as an excellent corporate citizen among stakeholders; and 4. Adopt a rigid internal control framework for inventory management to ensure inventory shrinkage and potential diversion to the illicit market are mitigated as much as possible.

PERFORMANCE MEASURES

Actual 2021-2022

Target 2022-2023

Actual 2022-2023

% of Target 2022-2023

Target 2023-2024

90.00% 100.00%

$150,000 85% 85%

$150,000 85% 85%

$135,675 85%

Investment in CSR Initiatives

$95,000

R etail Responsible Service Score Corporate Citizenship Survey Score

86% 86%

99.2%

84.33%

TACTICAL SUMMARY

Standing out as a corporate citizen that always conducts its corporate affairs in an ethical, transparent fashion is a key strategic focus for PEI Cannabis. Constant alignment with the primary public policy priorities surrounding legalization is the foundation of the Corporation’s business strategy which serves as the common ground it holds with its stakeholders. To be thought of as the preferred provider of cannabis by the public, regardless of their varying perceptions of cannabis use, PEI Cannabis has executed tactical plans focusing on branding, social responsibility, and stakeholder engagement. It has achieved reasonable short-term success in these areas. However, it has also identified some key challenges and opportunities related to how the Corporation can build on its reputation as a good corporate citizen that creates value for all stakeholders in the medium-to-long term.

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PEICMC 2022-2023 Annual Report