SOLUTIONS. SCIENCE. SUSTAINABILITY.

2015/2016 SUSTAINABILITY REPORT

CONTENTS 23PROVIDING BEST-IN-CLASS EMPLOYEE & CUSTOMER EXPERIENCES23

24

28

Talent Attraction & Recruiting

Employee Development Engagement, & Retention

Customer Experience

PROACTIVELY MANAGING INDUSTRY RISKS30

30

31

31

Cybersecurity

Biosecurity

Regulatory & Legal Compliance

Ethics & Governance

30

GLOSSARY44

48GRI CONTENT INDEX

4

WHO WE ARE4

6

6

7

9

10

What We Do

How We Work

Our History

Our Solutions, Services, & Markets Served

Our Team

Our Expansion2

LETTER TO STAKEHOLDERS

11OUR APPROACH TO SUSTAINABILITY11

12

17

17

17

Sustainable Strategies

Stakeholder Engagement & Materiality

Governance of Sustainability

Awards & Recognition

About Our Report 18 EXPANDING THE USE OF GENOMICS SOLUTIONS TO DRIVE MEDICAL, AGRICULTURAL, & ENVIRONMENTAL ADVANCES18

19

21

22

Innovation & R&D

Product Mix & Product Quality

Access to Genomics Applications

Brand Management

SUPPORTING THE VITALITY OF OUR PEOPLE, PLANET, & COMMUNITIES32

33

38

39

Health & Safety

Footprint Reduction

Supply Chain Management & Transportation

Community Investment

32

Front cover – Clockwise from left: Staff Scientist Kim Lennox, Application Scientist Nick Downey, Assistant Manager, Scientific Application Support, Brendan Owens and Scientific Applications Specialist Madhu Chikka at the Penn Elementary Science Night in Iowa; Team Leader, Manufacturing, Caroline Chew Shi Jie in Singapore; Machinist Cody Pachow in Iowa.

Back cover – Top: Senior Web developer Karl Ungs at a Habitat for Humanity event in Iowa. Bottom: Senior Maintenance Engineer He Bo in Singapore.

Corporate Stewardship Expansion

In 2015, IDT established an award program to provide a unique platform for recognizing and rewarding research that has the potential to make a positive global impact in key areas of sustainability. The 2015 and 2016 Sustainability Awards focused on biodiversity, a critically underfunded field of research.

To support the creativity and ingenuity of our next generation of scientists, IDT committed up to $1 million of products to undergraduate teams competing in iGEM, a synthetic biology competition that awards prizes for innovative solutions to medical, environmental, or industrial challenges.

Turning Challenges into Opportunities

Reducing our packaging footprint remains one of IDT’s most significant sustainability opportunities, and we are committed to finding solutions that reduce impacts while maintaining the highest standards of product quality and delivery speed.

In 2016, we began offering customers an additional shipping option for our PrimeTime® Gene Expression Master Mix, the only widely used commercial master mix stable enough for ambient shipping. IDT expects to save approximately 33 tons (US) in total package weight, 28.5 tons in dry ice, and 4,700 square feet of

Geographic Expansion

In 2015 and 2016, we extended our acquisition portfolio in the Pacific Rim by acquiring our Korean and Japanese distributors as well as the oligo manufacturing business of GeneWorks in Australia. Today, IDT has employees in 13 countries and is represented throughout the world by a network of 49 distributors.

In 2015, to build our R&D capacity and to attract top talent, we opened the Center of Excellence for Research and Development in Redwood City, California, a dynamic center of the biotech industry. In conjunction with our R&D teams in Iowa, we are developing and testing new products in functional genomics applications, including qPCR, NGS, and synthetic biology.

The multi-year, $15M renovation of our Leuven, Belgium, manufacturing facility expanded our synthesis capabilities and more than doubled our production capacity there. This investment has given our European customers faster and more affordable access to IDT’s genomics solutions. At the end of 2016, we purchased 26 acres of land in Research Triangle Park in North Carolina to establish an East Coast base for future operations.

G4-1

We are pleased to share with you IDT’s 2015/16 Sustainability Report, which details the many ways we are advancing sustainability on a global level.

The last two years at IDT are defined by expansion—which is evident in every facet of our organization. We are seeing record sales growth within our company and in the biotechnology industry as breakthrough technologies continue to clear a path for new and exciting genomics research. In 2016, we grew to be more than 1,000 employees strong for the first time in our 30-year history. We also met or exceeded all annual financial targets, achieving a 20 percent increase in revenue over 2015.

IDT’s rapid growth has made it necessary to re-imagine our company vision. We have committed to become the global leader in key genomics applications to drive medical, environmental and agricultural advances.

Genomics Solutions Expansion

IDT is already well-known as the world’s leading custom oligo manufacturer. To help meet the growing demands of researchers around the world, we have begun providing a full complement of genomics solutions through a systematic expansion of our manufacturing, customer service, and research and development capabilities.

In 2015 and 2016, we launched multiple products, including versatile probes, primers, editing tools, and diagnostic assays. By leveraging our expertise in DNA synthesis, we have delivered innovative products that advance cutting edge technologies such as CRISPR and NextGen Sequencing. Through strategic acquisitions and key partnerships, we continue to ensure our customers receive IDT’s excellent customer service.

landfill waste during the course of a typical year. This in turn reduces the demand on transportation resources, including specialized transport for dry ice and fuel consumption, and importantly, also reduces greenhouse gas emissions.

In our 2014 Sustainability Report, we cited the need to address our voluntary turnover rate, which had increased to 13.7 percent. Today, we are proud to report that through the success of our employee engagement and retention activities, we achieved a voluntary turnover rate of 8.5 percent in 2016. This significant achievement is a reflection of the dedicated efforts of our Human Resources team and the growing strength of our workplace culture.

A vital step toward becoming a global genomics solutions provider is our need to transition to a more sophisticated Enterprise Resource Planning platform. Many key members of our workforce have spent countless hours preparing for and carrying out this transition, and for this, we are very grateful. Expansion is not easy, but cultivating a culture of respect for each other and for the world around us inspires us to continue growing in a socially responsible manner. We thank all IDT employees for their commitment to making our company stronger and for doing the difficult work of pushing science and sustainability forward.

Sincerely,

Dr. Joseph A. Walder Chief Executive Officer

Elizabeth M. Walder Chief Sustainability Officer

Redwood City Center of Excellence for Research and Development

The first Pakistani iGEM team from universities across the country developed a biosensor that detects vehicle emission levels to combat air pollution.

STAKEHOLDERS Dr. Joseph A. Walder and Elizabeth M. Walder

2

3

IDT employees in Singapore at a 2016 teambuilding event.

THE SCIENCE BEHIND WHAT WE DOIDT’s primary business is the production of custom-designed strands of nucleic acids called oligonucleotides, or “oligos,” used for molecular biology applications. Oligos are created organically in nature or synthetically in laboratories. Living systems do not discriminate between the two.

Oligos are composed of DNA and/or RNA. These complex molecules are often referred to as the building blocks of life, and are described as “instruction manuals” for cells. Each DNA and RNA molecule contains one of four bases. When bases are combined with sugar and a phosphate group, they become nucleotides. DNA nucleotides include Adenine (A), Cytosine (C), Guanine (G), and Thymine (T). In RNA nucleotides, uracil (U) replaces thymine.

DNA and RNA nucleotides contain the information needed to create and direct cells in living organisms. DNA provides the code for a cell’s plans; RNA puts the plans into action by filling various functions within cells.

The precise order of nucleotides in a strand of DNA determines that organism’s characteristics—its genetic code. An organism’s genetic code, or genome, includes its complete set of DNA and RNA, and can be millions of bases long. This genetic code is responsible for the vast complexity and diversity of life on earth.

Identifying an organism’s genetic code is essential for scientists to better understand how cells can become defective, causing a life form to be diseased or otherwise malfunction. Repairing codes, or putting the building blocks back in proper order, has the potential to cure disease, prolong life, reduce hunger, and improve our environment.

WE ARE

G4-4

Integrated DNA Technologies (IDT) provides ourcustomers with critical tools to analyze the geneticmakeup of all organisms. Our products are used tosolve a spectrum of problems, from finding cures for diseases to identifying new species to finding new biological solutions for cleaning up our natural resources.

Our products are so basic to science, they are foundin research labs of all disciplines in all parts of the world.

What is DNA?

DNA is Deoxyribonucleic Acid. It is the “instruction manual” for every species. Genetic instructions for creating every living thing are stored as DNA. Much like the 26 letters of the English alphabet can be assembled into words, chapters, and books, the four nucleotides of DNA and RNA (A, T, C, G, and U) can be strung together to form genes, chromosomes, and genomes.

War and Peace3.2 Million letters

17 Volumes365 Chapters

English LanguageBuilding Blocks = Letters

A - Z: 26 letters

Human Genome3.2 Billion nucleotides

23 Chromosomes22,000 Genes

DNABuilding Blocks = Nucleotides

A, T, C, G: 4 Nucleotides

WHAT WE DOIDT delivers innovative genomics solutions to drivemedical, environmental, and agricultural advances.We produce synthetic DNA and RNA in differentforms for a variety of applications.

In addition, IDT makes complementary enzymes toprovide scientists with complete genomics solutions.

Our products are used to solve a spectrum of problems, from finding cures for diseases to identifying new species, to finding new biological solutions for cleaning up our natural resources.

W

hat is a genome?

The completeset of genetic

material present in a cell or organism

Wha

t is genomics?

The studyof the genome

and howit works

Everycreature onEarth has a

genome

Genomics ResearchIdentifies the genetic

causes of diseases

Finds genetic variations that affect drug metabolism

Finds biological methods of keeping our

environment healthy

Oligos and nucleotides can be used to create, among other things:

• Diagnostic tests for genetic diseases, like breast cancer or cystic fibrosis.

• Diagnostic tests for infectious diseases, like hepatitis or AIDS.

• Research to discover new drugs or treatments for diseases.

• Safer and more plentiful agricultural products.

• New biofuels that can be used to reduce fossil fuel consumption.

Using oligos and nucleotides to study DNA and RNA is fundamental to better understanding the complexity of life on Earth. IDT provides researchers with the genomics solutions that allow them to identify, catalog, and protect this biodiversity.

What is a Genome?

4

5

Opening of the Center of Excellence for Research and Development in Redwood City, CA

Belgium facility opened, offering local synthesis and complete IDT catalog throughout Europe

ISO 13485 certification and registration with FDA to provide oligos for diagnostic use

Development of higher density synthesis platform

OUR HISTORYJoseph A. Walder, MD, PhD and Baxter Healthcare Corporation founded Integrated DNA Technologies in 1987. A holder of numerous patents and formerly a professor of biochemistry at the University of Iowa College of Medicine, Dr. Walder established the University’s first facility for nucleic acid synthesis, and pioneered breakthrough technologies.

Early in his research career, Dr. Walder made contributions to the field of antisense technology. This technology became a critical tool for discovering the functions of many of the genes identified through the Human Genome Project—the world’s largest collaborative biological project that determined the sequence of the more than three billion base pairs that make up human DNA.

In 1992, IDT began offering high quality custom oligonucleotide probes and primers as commercial products. Staff at IDT developed an economically efficient method of production. Proprietary re-engineering of synthesis equipment and specially formulated synthesis reagents, coupled with other advances in quality control, have helped IDT earn a reputation for superior product quality and value-added customer and technical service.

Today IDT remains a privately-held company and a world leader in manufacturing and delivering custom nucleic acid products, as well as a recognized innovator of a broad array of genomics-based solutions.

HOW WE WORKIDT is the largest manufacturer of custom oligo products in the world today and continues to expand its reach. We consider every customer order to be unique. IDT meticulously creates each oligo ordered according to the researcher’s specifications.

IDT has developed proprietary technologies for genomics applications such as next generation sequencing (NGS), CRISPR genome editing, qPCR, and RNA interference. Through its GMP services, IDT manufactures products used in diagnostic tests for cancer and most inherited and infectious diseases.

To help keep us responsive to our customers’ needs, we have pioneered a variety of computer algorithms that enable our customers to effectively and economically create the best custom designed oligos, primers, and probes for their unique experiments. We maintain the industry’s highest standards for quality, delivery speed, customer service, and technical know-how.

Our innovative engineering team designs and builds the machinery we use. This enhances our vertical integration processes and allows us to deliver state-of-the-art oligo manufacturing. We have refined our processes to the point where some IDT locations can receive an order as late as 1:00 pm on any given business day and have the completed order in the researcher’s hands the next morning.

We service academic, corporate, and non-profit labs. Our customers range in size from individual researchers to small university labs to global pharmaceutical companies, and everything in between.

Began manufacturingoligos for sale

Synthesis of 1,000oligos per day

IDT founded to develop antisense and DNA detection technologies, funded by Baxter Healthcare

San Diego facility opened, offering rapid turnaround for West Coast

Production facility in Singapore completed

Investment by Summit Partners

1987 1993 1998 2005 2007 2008 2013 2014 2015 2016

Dr. Walder

In 2015 and 2016 we expanded beyond producing primarily oligos to becoming a full genomics solutions company. These solutions include:

• Custom Oligos

• Genes and Gene Fragments

• Next Generation Sequencing

• Genome Editing

• qPCR and Genotyping

• Functional Genomics

• Mutation Detection

• Molecular Biology Reagents

• GMP and OEM Integrations

• Purification and Packaging services

Our solutions have applications in biomedical, environmental, and agricultural research, including but not limited to:

• Animal Health

• Basic Scientific Research

• Biofuel Development

• Crop Science

• Environmental Testing

• Food Safety

• Forensics

• Gene Therapy

• Genetic Engineering

• Medical Diagnostics

• Personalized Medicine

• Pharmaceutical Development

• Prenatal Testing

• Public Health

Today IDT serves more than 100,000 life sciences researchers and ships over 65,000 nucleic acid products daily. The company maintains an engineering division dedicated to improving synthesis platforms, processing technology, and automation, as well as a machine shop for rapid prototyping and custom part production.

IDT serves its customers through direct sales and a network of international distributors. Our corporate headquarters is located in Skokie, Illinois, and our U.S. manufacturing headquarters is in Coralville, Iowa. We currently have additional manufacturing facilities in San Diego, California; Leuven, Belgium; and Singapore and research facilities in Coralville, and Redwood City, California.

OUR SOLUTIONS, SERVICES, & MARKETS SERVEDG4-5, G4-8, G4-13

Today IDT serves more than 100,000 life sciences researchers and ships over 65,000 nucleic acid products daily.

Company History

6

7

Key drivers of IDT’s leadership in nucleic acid synthesis include:

Vertical Integration of All Manufacturing

• Proprietary DNA synthesizers and manufacturing software

• In-house formulation of all key ingredients

Synthesis of All Nucleic Acids

• Standard and modified DNA and RNA

• Ultramer® oligos up to 200 bases in length

• Large scale synthesis

• GMP oligos for chemical diagnostics

• gBlocks® gene fragments and large cloned genes

Quality

• All oligos quality checked by mass spectrometry

Speed & Capacity

• More than 90% of orders shipped in less than 24 hours

• Rapid fulfillment of orders up to hundreds of thousands of oligos

Customer Service

• More than 165,000 customer support inquiries per year

• Technical support from IDT research and development groups

Genomics Market Snapshot

2013 2014 2015 2016

Employees 773 831 884 1022

% of Women in Management) 35 38.9 41.3 40.6

% of Women at IDT 43 42.4 42.2 43.9

% of Voluntary Turnover 10.1 13.7 9.8 8.5

% of Employees Covered by Collective Bargaining None None None None

IDT Demographics G4-10, G4-11

Genomics Applications Market Size >$5B

NGS qPCR

Genetic Analysis

Gene Silencing(RNA & Antisense)

Gene Editing(CRISPR)

Functional Genomics

Genomics Tools Market Size >$2B

GMP Oligos Third Party Manufacturing

Custom Nucleic Acid Synthesis

Synthetic Biology(gBlocks® Gene Fragments)

DNA Polymerases Ligases

Enzymes

Restriction Enzymes

DNA Isolation Products Transfection Reagents

Other Genomics Tools

Leuven, BelgiumProduction

Tokyo, JapanSales Office

Seoul, South KoreaSales Office

Coraville, IAProduction R&D

SingaporeProduction

Skokie, ILCorporate HQ

Sydney, AustraliaSales Office

San Diego, CAProduction R&D

Redwood City, CAR&D

OUR TEAM G4-6, G4-9, G4-17

Our talented and growing global team of more than 1,000 employees and 49 distributors across four regions—Americas, Asia-Pacific, Europe/Africa, and Middle East/Central & South Asia—serve our more than 100,000 customers.

Omar Camacho, formulation scientist in Customer Build Services in Coralville, IA.

New Design Solutions and Manufacturing building in Coralville now houses custom engineering and design operations.

8

9

SUSTAINABILITY STRATEGIESSustainability is integral to our business. IDT provides solutions and services that lead to scientific advancements which sustain and enhance our quality of life. Our vision is to be the global leader in genomics solutions, and this requires hiring and retaining top talent, innovative thinking, delivering best-in-class quality and excellent customer experiences—all part of our sustainability strategies.

In addition, sustainability means operating responsibly and taking strategic actions to ensure our business activities add value to the bottom line, as well as bring value to people, society, and the planet. This draws IDT to sustainability strategies focused on our operations, supply chain, and communities.

In 2016, IDT revised its sustainability strategies after a thorough process that included analyzing market trends and opportunities; refreshing our company mission, vision, and strategic imperatives; and revisiting our 2013 materiality assessment.

IDT Sustainability Strategies

• Expand the use of genomics solutions through broadening our innovation, product mix, and access; maintaining high quality; and effectively marketing our brand.

• Provide best-in-class employee and customer experiences by attracting, developing, and retaining highly-talented employees enabled to deliver phenomenal customer experiences.

• Proactively manage industry risks by maintaining integrity through product and data security, regulatory and legal compliance, governance, and ethical behavior.

• Support the vitality of our people, planet, and communities by driving improvements in employee health and safety, reducing the environmental footprint in our operations and supply chain, and giving back to both the scientific community and the communities where we operate.

These sustainability strategies and underlying topics form the basis for this report. We will detail their importance, how we manage each topic, our progress and performance, and the opportunities and challenges we are working to address, in 2015, 2016, and beyond.

TO SUSTAINABILITY

IDT provides solutions and services that lead to scientific advancements which sustain and enhance the quality of life.

OUR EXPANSIONWith our expansion comes a very deliberate focus to maintain what customers know us for and what sets us apart in the industry—our high quality, speed of delivery, and unmatched level of technical expertise and customer service. Throughout this report, we describe measures we are taking to sustainably grow our business. Here is a snapshot of our expansion over the last two years.

15%2006–2016

Compound Annual Growth Rate

17%2014–2016

Compound Annual Growth Rate

Throughout this report, we describe measures we are taking to sustainably grow our business.

On December 31, 2014 On December 31, 2016

Company Sites 5 9

Distributors 52 49

Customers 82,000 100,000

Oligos Made & Shipped Per Day 44,000 65,000

Company Growth

R&D as % of Revenue

8

7.5

7

6.5

6

5.5

5

4.5

4

2014 2015 2016

5.2%

6.1%

7.5%

Samantha Peach, lab assistant in GMP Manufacturing in Coralville, IA

IDT San Diego employees volunteer with GRID Alternatives

to bring solar energy to low-income households

Joel Esquig, Assistant Manager, IDT’s Digital Biology facility in San Diego, CA

10

11

In 2016, we conducted a materiality assessment to determine what aspects of sustainability most significantly impact our business and our stakeholders. This focused our sustainability strategies and helped define our 2017 sustainability goals.

Materiality Assessment Process

A third party facilitated the materiality assessment to objectively determine our sustainability priorities. The following multi-step process was used to determine priority topics.

Industry Research & Peer BenchmarkingTo identify potentially significant environmental, social, and economic impacts, risks, and opportunities, we began the process with industry research and peer benchmarking. For industry intelligence, we reviewed the following sources:

• CERES Roadmap for Sustainability

• Governance & Accountability (G&A) Institute “What Matters” study

• Global Reporting Initiative (GRI) sector supplements

• International Gene Synthesis Consortium (IGSC)

• Morgan Stanley Capital International (MSCI)

• RepRisk

• RobecoSAM

• United Nations Global Compact (UNGC) and United Nations Social Development Goals (UN SDGs)

• World Health Organization (WHO)

Value Chain MappingFollowing this research, more than 40 IDT cross-functional leaders came together to discuss and identify the topics that were most relevant to IDT across our value chain, pictured below.

Stakeholder EngagementWe interviewed a subset (10) of our key stakeholders—board members, customers, partners, distributors, and transportation providers—to gather their perspectives on sustainability topics that influence their decisions and are significant to the health of our business. We also distributed a survey to 50 IDT leaders around the business.

PrioritizationThe information gathered from research, benchmarking, and internal and external stakeholders was synthesized and quantified, leading to the identification of our top sustainability focus areas.

ValidationThe results of the materiality study were shared with the Sustainability Core Team and key cross-functional leaders to validate the results.

Our Tier 1 topics align well with our greatest contribution to sustainability: developing solutions that lead to scientific advancements in the fields of human health, food supply, the environment, and beyond. Our Tier 2 topics ensure we are running our business responsibly and sharing our expertise and success with our communities—the scientific community and the communities where we live and work.

Product Social Environmental Governance

Tier 1Tier 2Tier 3

Impact on IDT

Imp

act

on S

take

hold

ers

Access to Genomics Applications

Talent Attraction, Development, & Retention

Health & Safety

STEM Education

Employee Engagement

Supplier Human Rights & Fair Labor Practices Assessment

Community Investment

Collaboration & Ownership

Disclosure & Product Labeling

Product Quality

Innovation/R&D

Customer Experience

Product Mix

Product Safety

Transparency

Intellectual Property

Connection to Controversial Products

Waste/Packaging

Energy & GHG Emissions

Transport

WaterMaterials

BiodiversitySupplier Environmental Assessment

Environmental Management SystemGreen Building

Governance & Ethics

Regulatory & Legal Compliance

Biosecurity

CybersecurityBrand Management

STAKEHOLDER ENGAGEMENT & MATERIALITYG4-18, G4-23, G4-24, G4-25, G4-26

IDT Value ChainG4-12

2

1

3

4

5

Relative Priority of Sustainability TopicsG4-19

Corporate HeadquartersSkokie, IL

ProductionCoralville, IA

Leuven, BelgiumSan Diego, CA

Singapore

R&DCoralville, IA

Redwood City, CA

OfficesAustraliaEuropeJapan

SingaporeUnited StatesSouth Korea

Stakeholders

Communities, Customers, Distributors, Employees, Government/Regulators, Industry Groups, Media, Partners, Potential Investors, Public Health Organizations, & Suppliers

Customers

AcademicCommercialGovernmentNon-Profit

Raw Materials & Supplies

ChemicalsDNA amiditesRNA amiditesCPGPlastic column bodies

Plastic tubesPlatesBoxes & envelopesDry iceOther services

Supply Intake

AirRoadMaritime

Product Shipping

AirRoad

Distributors

AfricaAsia PacificCentral & South AsiaEuropeLatin AmericaMiddle East

Direct Sales

Asia PacificCanadaEuropeOceanaUnited States

7

INTEGRATED DNA TECHNOLOGIES

6

End of Life

Dispose or recycle (tubes, plates, & packaging)

8

12

13

Definition Boundary Interested Stakeholders

Cybersecurity

Adopting a proactive approach to protecting the intellectual property of our company stakeholders, especially our scientists; ensuring our stakeholders’ proprietary information is secure.

All stakeholders Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Biosecurity

Conducting effective screening of orders to prevent the misuse of our products.

Customers Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Regulatory & Legal Compliance

Adhering to all local and national laws and industry regulations governing our practices, products, and services; being aware of and proactively addressing potential future risks and opportunities from new/emerging laws and regulations governing new technologies across current and future countries where we operate.

IDT Board of Directors, Customers, IDT Employees, Industry Peers, Investors, Transportation Partners

Ethics & Governance

Providing effective corporate governance structure, business processes, training programs, auditing, and reporting mechanisms to ensure IDT and our distributors demonstrate the highest standards in conducting business lawfully and ethically.

IDT, Distributors Board of Directors, IDT Employees, Industry Organizations, Industry Peers, Investors, Sustainability Experts

Expanding the Use of Genomics Solutions to Drive Medical, Agricultural, & Environmental Advances

Product Social Environmental Governance Product Social Environmental Governance

Research Scientists Mollie Shubert and Arielle Watson, with Manager, Scientific Applications Support, Elisabeth Wagner teach children science during the Iowa Parks and Recreation summer STEAM Camp.

Definition Boundary Interested Stakeholders

Talent Attraction & Recruiting

Attracting top talent to drive our value proposition and growth through effective recruiting strategies.

IDT Employees Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Employee Development, Engagement, & Retention

Retaining top talent to drive our value proposition and growth through effective training, engagement, development, and retention strategies.

IDT Employees Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Customer Experience

Providing our customers with quick turnaround times and personalized services in designing or refining research parameters so results are achieved efficiently and cost-effectively.

Customers Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors

Definition Boundary Interested Stakeholders

Innovation & R&D

Employing a sustainable approach to R&D and innovation, and producing new products and processes that meet the critical and ever-evolving needs of our customers and society.

IDT Production, R&D, Sales, Suppliers, Customers

Board of Directors, Customers, Distributors, IDT Employees, Industry Organizations, Industry Peers, Investors, Sustainability Experts

Product Mix & Product Quality

Effectively expanding our capacity to produce, sell, and provide technical services for new and existing products while upholding our key differentiators—quality, speed, value for cost.

IDT R&D, Production, Sales

Board of Directors, Customers, Distributors, IDT Employees, Industry Organizations, Industry Peers, Investors, Sustainability Experts

Access to Genomics Applications

Providing affordable products and services to researchers around the world with significant value for cost, enabling an increase in scientific advancements and medical innovations.

Customers, Suppliers, IDT Production, R&D and Sales

Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Brand Management

Effectively defining and refining our brand identity as a genomics company and strengthening communications to drive awareness as we expand into new markets.

IDT, Distributors, Customers

Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors

G4-19, G4-20, G4-21, G4-27

Our corporate strategy and materiality assessment drove the creation of our sustainability strategies. Following are our strategies, along with our material topics, defined. Boundary refers to the places or stakeholder groups that are most impacted by a material topic.

Providing Best-In-Class Employee & Customer Experiences

Proactively Managing Industry RisksG4-19, G4-20, G4-21, G4-27

14

15

Product Social Environmental Governance

GOVERNANCE OF SUSTAINABILITYG4-22, G4-34, G4-56 In our last report, we committed to conducting a comprehensive materiality analysis in 2015 and 2016, and establishing a global, multi-disciplinary sustainability committee to design and implement sustainability initiatives. This has been done. We formed a corporate Sustainability Steering Committee at the beginning of 2017, led by Chief Sustainability Officer, Elizabeth Walder. This committee is comprised of various cross-functional IDT leaders across the company, each of whom owns one or more of our material topics.

This group is accountable for the ongoing strategic governance, goal setting, and tracking of key performance indicators as well as the implementation of initiatives and processes that ensure the integration of environmental, social, and economic sustainability into IDT business practices. Senior leadership reviews all significant decisions from this group and our sustainability program is brought before our Board of Directors for dialogue and approval on an annual basis. Individual IDT facilities have had environmental, health, and safety committees for years that have addressed local, site-specific issues. As the company has expanded, facility teams have consolidated efforts and now meet as a group quarterly to address common issues.

The IDT Code of Conduct specifies responsible behavior across the enterprise for all employees. Our environmental management system, quality management system, and other systems and processes that we have put in place to effectively govern sustainability, are described in greater detail throughout this report.

AWARDS & RECOGNITION• 2015 Vendor of Excellence Award from Albert

Einstein College of Medicine

• 2015 Habitat for Humanity Iowa Valley Team of the Year

ABOUT OUR REPORTG4-28

This is our third sustainability report, and is written in accordance with the Global Reporting Initiative’s (GRI) G4 guidelines “Core” option. In this 2015/2016 sustainability report, the metrics presented cover calendar years January 1, 2015, to December 31, 2016. Where specified, some details provided cover work taking place in 2017 in order for readers to have the most current information available. We welcome feedback, both on this report and on our sustainability priorities. Submit comments, questions, and feedback to sustainability@idtdna.com.

IDT completed a comprehensive materiality analysis and established a global, multi-disciplinary sustainability committee to design and implement sustainability initiatives.

Marty Christensen, senior analyst, enterprise systems, volunteers with Habitat for Humanity in Coralville.

Our General Managers lead the company forward in all aspects of sustainability. Left to right: Trey Martin, Wong Khai Tang, Greg Fender, Rick McConahay, Dan Dernbach, and Caifu Chen.

Definition Boundary Interested Stakeholders

Health & Safety

Providing safe working conditions, safety equipment, and comprehensive safety training programs and resources to ensure the health and safety of employees.

IDT Employees Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors

Community Investment

Investing in the scientific community through STEM education and product donations. Volunteering our time, expertise and financial support in our local communities.

IDT, Community Customers, IDT Employees, Industry Peers

Energy & GHG Emissions

Lowering our greenhouse gas (GHG) footprint through reducing energy use, increasing efficiency, and using renewable energy sources.

All IDT Facilities Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts, Transportation Partners

Water

Identifying operational risks related to water scarcity and reducing water use through increased recycling/reuse and efficiency measures.

All IDT Facilities Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts

Waste & Packaging

Minimizing waste (non-hazardous and hazardous), and maximizing recycling and beneficial reuse where possible. Minimizing our environmental footprint through the design and use of sustainable packaging materials when possible.

IDT, Customers Board of Directors, Customers, Distributors, IDT Employees, Industry Peers, Investors, Sustainability Experts, Transportation Partners

Supply Chain Management & Transportation

Ensuring all suppliers uphold and adhere to IDT’s policies with regard to environmental practices, human rights, fair labor practices, and decent working conditions for all employees by screening and auditing suppliers. Assessing risk to business continuity and crafting contingency plans to mitigate supply and business disruptions.

IDT, Suppliers Board of Directors, Customers, IDT Employees, Industry Peers, Investors, Sustainability Experts

Supporting the Vitality of Our People, Planet, & CommunitiesG4-19, G4-20, G4-21, G4-27

16

17

IDT is well-known as the world’s leading custom oligo manufacturer, and it is our goal to become recognized as the world’s leading genomics solutions provider. We develop and manufacture a range of products with applications across a variety of life sciences, such as biochemistry, immunology, and molecular biology.

INNOVATION & R&DOver the last few decades, genomics has increasingly become a focal point of the scientific community. IDT researchers have played a vital role in advancing this discipline. We are the top custom nucleic acids manufacturer in the world, supplying critical consumables to this field. Our transition to a complete genomics solutions provider will further support the growing scientific research being conducted in this exciting area worldwide.

Expanding our existing product lines with a comprehensive array of genomics assays, enzymes, molecular biology reagents, and advanced genomics solutions products has required a significant investment in our research and development efforts. IDT adopts the same careful, systematic approach to product development that we apply to all facets of our business. Our scientists constantly engage with colleagues around the world and evaluate the latest scientific research breakthroughs to stay at the forefront of genomics discovery. Our research, product management, and sales teams stay in

constant contact, and hold regular discussions with one another to share the latest customer feedback, trends and opportunities.

Changes in biotechnology come quickly, and IDT strives to keep our product development teams poised to meet market demand when it arises. To accomplish this, we remain vigilant in our pursuit of the latest genomics technologies and applications, and balance our scientific output across a range of activities. We produce dozens of peer-reviewed papers, patent applications and invention disclosures each year. In this way, our R&D scientists stay focused on continual innovation and new product development.

GENOMICS SOLUTIONS

We continually optimize product offerings to ensure each is dependable, brings value to the market, and represents a significant improvement in the field. Our R&D teams selectively and thoroughly study and test potential innovations. For example, we spent more than a year refining our Alt-R® CRISPR-Cas9 system and xGen® Exome Research Panels before releasing our first versions in 2015. This emphasis on due diligence is a key reason for our continued growth and success.

As an integral part of developing these novel products, IDT validates function through extensive beta-testing. We collaborate with external partners, who are potential customers, to refine the use of our new products and processes. We then publish our results for the scientific community to use and build upon. In 2017, our goal is to advance genomics by presenting at least 20 talks and webinars and publishing at least 10 peer-reviewed papers and web application notes to our colleagues.

To be a market leader in providing valuable genomics solutions, IDT must continue to build our R&D capabilities. In 2015, we opened a new 8,000 square foot Center of Excellence for Research and Development in Redwood City. There, our staff focuses on genomics applications, including next generation sequencing (NGS) and qPCR. The Redwood City team develops

complete workflow solutions for cutting edge applications that provide additional value to our customers. The R&D teams at our U.S. manufacturing headquarters in Coralville, have also been expanded. A cell biology/molecular genetics team is now located in Iowa to focus on the rapidly developing field of CRISPR genome editing.

PRODUCT MIX & PRODUCT QUALITYAs IDT expands both our operational footprint as well as the breadth and complexity of our product lines, we remain steadfast in providing best-in-class quality and speed of service. Researchers around the world rely on us to help them solve pressing global problems. It is therefore vital that IDT upholds our unwavering commitment to product quality.

To do this, we have quality management systems, policies, and procedures in place to ensure our products perform as expected—every time—saving customers both time and money in conducting their experiments. As we rapidly increase our capabilities to meet the growing market demand, we will continue to prioritize quality management and quality control so that our customers may continue to rely on our quality genomics solutions.Our transition to a complete

genomics solutions provider will further support the growing amount of scientific research being conducted worldwide.

Garrett Rettig, senior staff scientist, Coralville, IA

18

19

Quality Management System

Every oligo we produce is analyzed using mass spectrometry, and we now produce up to 65,000 oligos a day. Quality control continues to be a key differentiator for us, built on a consistent investment in quality control processes and equipment over the past 30 years. We pride ourselves on using the same level of rigorous quality management and quality control processes at each of our production facilities worldwide to ensure that all IDT customers have access to the same high quality materials, regardless of where individual orders are filled.

Turn-around-time is another metric that sets IDT apart. We process and deliver the vast majority of our orders in 24 hours or less. We collect real-time data to ensure our production lines are meeting the exacting standards our customers expect. Our ISO 9001 certified systems form the basis of our strict, standardized approach to quality control across all manufacturing processes.

We specify a number of quality checkpoints along each part of the IDT value chain, beginning with our raw materials. Each facility has dedicated resources to verify the quality of every raw material input prior to use. During the manufacturing process, we continually monitor several key performance indicators in real time. IDT has specific protocols in place for immediate intervention whenever our systems detect a quality issue. All products are quality verified prior to being delivered to customers.

2015/2016 Highlights

In 2016, IDT completed a multi-year expansion at our production facility in Leuven that more than doubled production capacity there. As part of the expansion, we opened a new Good Manufacturing Practices (GMP) lab certified under ISO 13485 standards. This is our first GMP facility outside of the U.S., and going forward, our Leuven facility will help IDT bring expanded synthesis capabilities to customers in Europe, the Middle East and Africa. IDT also expanded the number of products we produce globally in 2016.

Through our implementation of new synthesis processes, all IDT customers will now have faster access to a wider range of our genomics applications.

These milestones are the latest in a series of key product and production expansion activities across our operations. Other highlights include:

• Established direct sales offices in South Korea and Japan, improving our ability to sell our products in these markets and offer quick, reliable customer service with support in local languages.

• Expanded our overall manufacturing capacity by 30 percent in Coralville.

• Completed a $750,000 renovation project at our San Diego, California site which increases capacity 40 percent over the next two years by adding additional warehouse and shipping space, a new analytical laboratory, and a reconfiguration of the existing manufacturing areas.

• Launched the Alt-R® CRISPR System product line, providing researchers with the most effective gene editing tools available.

• Introduced the xGen® Exome Research Panel, which has outperformed competitor’s products, and therefore, provides more accurate genomics data for personalized medical applications.

All IDT customers will now have faster access to a wider range of our genomics applications.

• Introduced PrimeTime® Gene Expression Master Mix, one of the most stable and cost effective qPCR master mixes on the market.

ACCESS TO GENOMICS APPLICATIONSSequencing the first human genome cost millions of dollars. Ongoing improvements in technology continue to reduce the cost of sequencing so that in some instances, scientists can now sequence an entire genome for as little as a few hundred dollars. IDT’s quality oligos are one of the key contributors t o the unprecedented decline in costs. IDT strives to provide quality products at a reasonable cost to facilitate genomics research for all scientists—even

small programs with little funding. IDT believes in advancing society’s collective understanding of life and ways to sustain it.

Best Value

We pride ourselves on manufacturing and distributing the best oligo and application specific products that researchers can find in the market. Our goal is to provide customers with the ability to conduct experiments efficiently and effectively, from start to finish. Not having the right high-quality products can lead to incomplete or poor data, failed results, and unnecessary troubleshooting, which increases costs while slowing innovation.

IDT products deliver better experimental performance, which provides scientists with better data. They also receive better value through contact with our full-service support staff, who have expertise in a variety of genomics field applications. In addition, our research scientists often work directly with customers to help them find the right solutions to advance their research. The end result is that more laboratories around the world have better access to reliable and cost-effective genomics applications, leading to greater scientific discovery.

FPO

Finding Genes to Help Feed Our Increasing Population With our world in the middle of a population explosion—another 2 billion people are expected to be added to the globe in the next 50 years—researchers like Dr. Asaf Distelfeld are looking for solutions to feed this growing populace. Dr. Distelfeld is focused on improving the genetics of wheat—a crop that already supplies 20% of the global calories today.

Modern wheat varieties have very little genetic diversity, making them susceptible to diseases, and less likely to withstand the stresses of drought and declining soil fertility, problems associated with over-farming and climate change. Dr. Distelfeld is looking for a way to give our modern wheat these traits.

Through genome sequencing of an ancient variety of wheat called wild emmer wheat (WEW), Dr. Distelfeld and a consortium of researchers around the globe will isolate genes for traits that overcome the weaknesses of modern wheat.

IDT’s NextGen sequencing products provide crucial reagents for decoding genomes, including those of WEW. Once identified, beneficial genes from WEW can be used to enhance our modern wheat using traditional crossbreeding methods. These future wheat varieties will have better disease resistance and higher yield under stressful environmental conditions.

IDT products are essential tools to unlock new strategies to make modern wheat able to withstand future pressures from global climate change and soil fertility decline so that we can produce enough food for our growing population.

Dr. Asaf Distelfeld presents his research to IDT scientists in Coralville, IA.

20

21

Geographic Expansion

Our continued geographic expansion allows us to provide increased access to genomics applications as well. Establishment of additional facilities brings production and inventories closer to customers, which improves delivery times and reduces shipping costs. IDT now operates manufacturing sites in three countries, and has local offices in six. We serve customers worldwide.

Over 2015 and 2016, we acquired MBiotech in South Korea; Valuegene in California; AITbiotech in Singapore; and MBL in Japan. We also formed strategic partnerships with a number of organizations, including Caribou Biosciences, Clontech, Sophia Genetics, and the Broad Institute.

BRAND MANAGEMENTIn recent years, our rapid expansion has resulted in a growing portfolio of genomics solutions and new geographic areas of operation. With this expansion comes the need to reinforce our brand identity in the marketplace. It is important for us to maintain a consistent presence so that our customers, both new and established, continue to recognize our brand. IDT has a strong reputation for providing quality, consistency, speed of service, and unparalleled technical customer service. We must make certain that we clearly communicate this brand promise so that all customers will associate IDT with industry-leading genomics solutions.

New Branding & Engagement Strategy

Through 2016, IDT developed a new branding strategy that details who we are and our updated value proposition—producing high quality, high-performing, and reliable genomics solutions for IDT customers on a global level. In 2017, we will unveil this branding strategy through both internally- and externally-facing campaigns.

Internally, we will globally promote employee training to raise awareness and understanding of our brand messaging and guidelines. Externally, we will globally promote our compelling genomics advocacy positioning and related new look and feel. We want all IDT customers and potential customers, regardless of geographic location, to receive a consistent brand message.

One key element of our global branding strategy is to identify and address changing market trends, especially as they relate to the use of our products. Our marketing, sales, and other commercial teams continuously monitor this. They incorporate formal customer engagement processes to routinely measure awareness and usage levels of IDT products. In addition, these engagement activities provide IDT with insights end users look for in their genomics solutions.

In 2017, we plan to enhance this program, using a continual cycle of measuring global brand awareness and regional market preferences to inform and further elevate the IDT brand value over time.

A key element of our global branding strategy is to identify and address changing market trends, especially as they relate to the use of our products.

Our long-term success depends heavily on having a highly skilled and motivated workforce. It is vital that we hire talent with the expertise to serve the evolving needs of our customers. We must also continually provide an engaging culture and develop our employees’ skill sets so they are empowered to proactively contribute to IDT being a best-in-class genomics solutions provider now and into the future.

TALENT ATTRACTION & RECRUITINGG4-DMA, G4-LA10

In the highly dynamic biotech industry, attracting and sourcing the right talent can be challenging. We are evolving our talent sourcing processes to ensure we attract and hire the right candidates for the right jobs in a timely and efficient manner. Our aim is to provide IDT leaders with the talent resources needed to achieve our short- and long-term goals. By 2018, we will produce a talent dashboard for hiring managers to use to improve strategic decision-making and planning across the organization.

Our Talent Acquisition Team (TAT) partners with local universities and recruiters to raise awareness of IDT among career advisors. In the next year, the TAT will identify five to six key talent sources across the

country with whom to build relationships to support our hiring strategy. We will attend several U.S. recruiting and networking events in 2017 to increase IDT brand awareness as an employer of choice. To provide all IDT candidates with a consistent, high-quality recruiting and onboarding experience, in 2016 we launched a training program for hiring managers, with the goal of standardizing interviewing techniques and harmonizing new hire orientation globally. Our target is to have a minimum of 50 percent of hiring managers across U.S. operations complete this training by the end of 2017, and then continue to expand the training worldwide.

To further improve our recruiting and manager training of new hires, in 2018 we will begin gathering feedback about our onboarding processes from new employees at intervals of 60 days, 90 days, and 1 year of hire. In doing so, we hope to improve the quality of our data on the recruiting process, orientation, and first year expectations.

EMPLOYEE & CUSTOMER EXPERIENCES

Skokie employee, Shlomo Cherrick, senior tax accountant of indirect taxation,

volunteers at The Talking Farm.

22

23

First Ever All Employee Town Hall Huge SuccessIn March 2016, IDT held its first-ever all employee Town Hall that was attended by nearly 100 percent of the company. Held in Iowa, the event allowed employees worldwide to engage and interact in real time. Senior leaders unveiled an updated company vision, mission, and strategic imperatives that continue to guide the company today.

We are a making a significant investment in recruiting, hiring, and onboarding. We realize we must continue to nurture our culture, keeping our employees connected to and engaged in the important work that we do.

Employee Development

As our company expands and employee roles continue to evolve, it is becoming more important for every IDT member to have a strong base of knowledge of the biotechnology industry and the role IDT is playing to advance genomics.

Our QUEST for Knowledge custom-designed online training program, a sustainability initiative introduced in 2016, provides employees worldwide with an opportunity to better understand the science behind IDT products and their applications in the real world.

In 2016, more than 75 percent of our workforce enrolled in the QUEST program. By mid-2017, more than half of our employees—562—had completed the entire program of 22 seminars and their assessments.

Employee Engagement

We place great value on having a satisfied and engaged workforce. Our goal is that every employee knows and understands our corporate vision and its relationship to sustainability.

To that end, in 2015, IDT launched a Retention and Progression (RAP) program with the goal of improving employee retention through informal one-one-one discussions between managers and employees across our facilities. Using the RAP process, managers are encouraged to meet regularly with their employees and new hires to foster effective dialogue regarding one another’s individual work styles and desires with work-life balance. This leads to stronger working relationships between employees, managers, and executives.

We believe the most effective internal communication is three-way: leaders to employees, employees back to leaders, and employees to one another. Our internal communications strategy, along with new tools and channels, will create more opportunities for employees to engage with one another to share best practices across the company.

EMPLOYEE DEVELOPMENT, ENGAGEMENT, & RETENTIONG4-DMA, G4-LA10

Employee Engagement SurveysG4-DMA

In 2015, we conducted our first employee engagement survey to receive feedback on IDT employees’ work experiences and the issues most important to our workforce. The survey achieved an overall response rate of 83 percent, and identified several positive attributes and opportunities.

The two highest-rated qualities reflected by our employees were a willingness to put in extra effort to complete projects, and a willingness to help other colleagues manage heavy workloads. In addition, IDT employees showed optimism about the future of the company. The survey also provided several areas for improvement, including ensuring our salary levels align with the marketplace, increasing our communications related to strategic direction, and providing additional opportunities for employee recognition. For 2017 and beyond, IDT leaders are creating and implementing response plans that build upon areas where we are performing well and address key employee concerns.

One outgrowth of the employee engagement surveys was a Culture Enrichment Group (CEG), formed in 2016. This group is comprised of 24 managers across our U.S. locations. They meet regularly to discuss trending HR topics and issues within the company, as well as to share best practices and lessons learned in implementing engagement programs. The CEG uses the information reported in these sessions to help company leaders provide a more responsive and more collaborative work environment for all employees.

Voluntary Turnover

In our last report, we set a goal to reduce companywide voluntary turnover to 12 percent by the end of 2015. We exceeded this goal and by the end of 2016, voluntary turnover had decreased to 8.5 percent.

Employee Performance Reviews

Regular performance reviews are a critical part of an employee’s professional development. To meet our talent management goals and increase overall workforce satisfaction, we are establishing a global performance review process that will provide a consistent evaluation experience for managers and employees. IDT leaders will use the data collected in our performance reviews to identify opportunities and develop employees. In 2016, IDT completed annual reviews for 90 percent of our employees, and we continue to work toward our goal of achieving a 100 percent rate across all operations.

Jiashi Wang, research scientist in Redwood City

Our internal communications strategy will create more opportunities for employees to engage with one another to share best practices across the company.

14

12

10

8

6

42013 2014 2015 2016

10.1

13.7

9.8

8.5

Voluntary Turnover 2013–2016G4-LA1

Number of Employees That Completed Quest

600

500

400

300

200

100

0Q4

2016Q1

2017Q2

2017

Goal

Goal

Goal

317

382

562

24

25

The Health & Wellness Program in ActionOur Coralville location, where the majority of our employees are located, is one of our most active sites. There, the Wellness Committee sponsors monthly events tailored to specific topics, for example, Alzheimer’s and brain awareness month. In September, the site offers a Wellness Week with seminars and activities to promote a healthy lifestyle.

In addition to hosting its own internal website focused exclusively on wellness facts and activities, Coralville employees sponsor and host a community garden on IDT’s site in Iowa. The garden includes a seed exchange program, educational classes offered by local gardening experts, and opportunities for employees to grow their own fruits and vegetables for their families and the local community.

In 2015, 55 participants donated 255 lbs. of produce to the Johnson County Crisis Center Food Pantry. Along with Coralville, our San Diego, CA, site conducts a “Thinner Winner” contest each year. Participants undergo hydrostatic testing to ensure accurate body composition measurements, then track decreases in body fat, body mass and weight as well as increases in lean body mass over an eight-week competition. Winners earn prizes aimed at helping them stay on track with their overall fitness goals. In Leuven, Belgium, employees have participated the last five years in a 5K Research Run around their campus that enhances teambuilding while raising money for charitable causes. In 2016, funds raised supported KanActief, an association guiding cancer patients via sports and exercises.

In Singapore, employees have opportunities to participate in health fitness classes that range from Zumba to hip hop to piloxing yoga, kickboxing and more.

Health & Wellness Programs

We are in the best position to succeed when we have a healthy workforce. All IDT employees are encouraged to participate in our annual health screenings, and we offer many opportunities to engage in healthy activities throughout the year.

Facilities promote health and wellness through various events, contests, and fundraisers. Blood donations, fun runs, golf outings, and educational seminars discussing disease prevention, healthy eating, and weight control, among other topics, are just a few activities hosted across the organization. Some sites offer “wellness bucks” to encourage participation. Others track points for prizes or offer other incentives to keep employees motivated to become and remain the healthiest possible versions of themselves.

Volunteer Time OffIDT believes that dedicating time to enriching the lives and well-being of our communities also enriches the lives of our employees. Since 2015, our Volunteer Time Off (VTO) program, Two Days to Make a Difference, has helped ensure that all our employees have the opportunity to give back to their communities.

Every IDT employee, regardless of length of service, is entitled to two paid days of VTO each year to serve non-profit organizations that align with our corporate vision. Over the next year, we will expand our VTO program to our newer facilities in Redwood City; Japan; Australia; and Korea.

Employees worldwide embrace health, wellness, volunteer, and team building activities. Clockwise from far left: San Diego employees clean the beach for I Love A Clean San Diego; Volunteering at the San Diego Botanic Garden; Leuven employees participating in the annual 5K Research Run; the 2016 Coralville Wellness Committee; and Singapore employees complete a team building exercise at Universal Studios.

26

27

with each customer and each topic mentioned, good or bad, so that we can identify trends. We track our customer service performance and effectiveness daily, weekly, monthly, and quarterly.

Employee training occurs throughout the year to drive consistent, positive customer experiences. Our internal management teams meet regularly to discuss best practices and lessons learned from recent customer interactions. A customer dashboard provides a detailed, up-to-date summary of our customer service performance.

As IDT continues to expand into new markets with an evolving mix of genomics solutions, we will continue our focus on delivering best-in-class customer service to provide IDT customers with the support they need to drive breakthrough results.

Customer Journey Mapping

In 2015 and 2016, we hosted day-long customer workshops, during which we gathered direct feedback on a variety of questions, issues, and topics affecting our customers’ experiences with us. One workshop focused on our Good Manufacturing Practices (GMP) labs—which includes manufacturing in our ISO 13845 certified facility, cleanroom conditions, quality control standards, single-point customer support, license-free access to patented reagents, and large scaled synthesis capabilities.

Customer & Third-Party Audits

Our manufacturing facilities, all of which comply with ISO 9001 and ISO 13485 standards, undergo regular audit reviews. These include 30-50 customer audits each year. Additional third-party audits are conducted once every one to two years.

IDT maintains an open-door policy with our customers who want to verify our quality control systems. Their audits cover various aspects of our systems, including our management review process, customer complaint procedures, employee training records, equipment diagnostics, and maintenance history. These audits serve as additional assurance to our customers that IDT will continue to meet or exceed their rigorous standards for product quality and customer service.

Our Net Promoter Score has remained among the highest in our industry. This performance reflects our ability to meet our customers’ high expectations.

CUSTOMER EXPERIENCEG4-DMA

Customer experience is a significant differentiator for IDT. We take pride in delivering the highest quality products and solutions in a timely manner, often within 24 hours, all while providing unparalleled expertise and customer support. We examine all customer touchpoints—from marketing, to ordering via our website, delivery, and back-end technical support—ensuring the experience is easy, streamlined, positive, and predictable. In many countries, we provide customer support in local or native languages. Several key performance indicators keep us informed of our quality of service, response time, overall customer satisfaction, and customer advocacy.

We communicate with our customers in multiple languages via telephone, email, video, web chat, published content, and social media. Through these multiple channels, we share news and information about our products, services, and offerings. We also provide tips and examples to help our customers perform research more efficiently and effectively. In our own publication, DECODED, and through other channels, we try to inspire researchers by showcasing examples of scientists who have achieved research success using our products.

We have software platforms, formal policies, and processes in place to address all aspects of the customer experience. Regular market surveys and customer interviews help us identify customer needs, anticipate future trends, and inform product and service design. Updates to our website and product-ordering tools are designed using feedback from customer interviews and usability tests.

We provide education and networking opportunities for our customers and others in the scientific community. Our webinars feature industry leaders, IDT researchers, and technical support specialists who highlight new technologies and scientific techniques. Our Scientific Communications team regularly produces original articles to inform the research community.

In addition, we closely monitor customer feedback and complaints. We categorize each one, and document the workflow path that must take place to address the issue. We document every interaction

Transition to SAP

As IDT continues to grow, we are putting in place more sophisticated systems and processes to ensure consistency across the organization. These improvements will support a more diverse product mix, a global workforce, and an expanding geographic footprint.

One of our most significant investments is moving to SAP as our enterprise resource planning software. Among its many benefits, the SAP transformation will enable IDT to scale our business in the most effective manner possible through optimized inventory levels, efficient delivery times—even if the product is not manufactured locally—and electronic invoicing. Most importantly, SAP will enable us to continue to deliver a best-in-class customer service model worldwide. Preparation, planning, and testing for this project has been ongoing through 2016 and 2017. We will begin implementing SAP in 2018.

Net Promoter Score (NPS)G4-DMA, G4-PR5

NPS is generated from customer surveys. It measures the percentage of customers who are willing to recommend IDT to others as a provider of genomics solutions. The survey also measures overall customer satisfaction. Over the last two years, our NPS has remained among the highest in our industry. In 2016, 1,147 customers answered the survey, and we achieved a global average NPS of 73 percent and an overall customer satisfaction global average of nine out of a possible 10. IDT’s product quality is the primary reason our customers choose IDT.

This performance reflects our ability to meet our customers’ high expectations and evolving needs. Our goal is to reach an NPS of 75 percent by the end of 2017. To do this, we will continue to focus on making each interaction with IDT a positive customer experience.

Global IDT Average 73.04% (Maximum of 100%)

Net Promoter Score

IDT 73.04%

Global IDT Average 9.12 (Maximum of 10)

Overall Customer Satisfaction

IDT 9.12

Primary Reasons Customers Choose IDT

IDT’s product quality is the primary reason our customers choose IDT.

Website Speed & Ease of Use

Interaction with Sales Rep or Team

Technical Support& Resources

Product Pricing

TurnAround

Time

Product Quality & Innovation

28

29

The IGSC promotes best-in-class bio-screening capabilities with regular meetings to discuss a variety of topics and concerns with all gene synthesis companies. The IGSC provides a great forum for IDT to discuss key topics and challenges with our peers and other thought leaders in the industry. For example, as novel technologies and product portfolios expand, it is important for us to streamline bio-screening processes, so that we may increase our overall screening capacity while maintaining efficient turnaround times for customers. IDT is involved in developing more efficient bio-screening methods without sacrificing their effectiveness. We will continue to dedicate time and resources to supporting the IGSC as a cohesive framework and standard for our industry.

REGULATORY & LEGAL COMPLIANCEWe conduct business in an open and honest manner and expect all IDT employees to uphold the highest ethical standards in their decision-making. We aim to meet or exceed all laws and regulatory requirements in each of our operating areas. IDT applies several tools and processes that help our employees identify and address ethical issues and report inappropriate conduct.

Record retention is a key topic for IDT, as many of our customer service team members have access to customer financial information. IDT regularly conducts employee refresher training on our record retention policy, and in 2017, it is our goal to conduct at least three training sessions at our U.S. operations. IDT is currently forming a record retention audit committee and by the end of 2017, will develop a formal record retention compliance process.

CYBERSECURITYG4-DMA

While technology is helping to advance efficiency and sustainability through increased access to information, products, services, and best practices, it is more important than ever to safeguard the privacy, confidentiality, integrity, and availability of our stakeholders’ data. New threats are constantly emerging, and there is no single standard or policy that will perfectly protect our data. Instead, we adopt a proactive and adaptive approach towards mitigating data security risks. Through training and testing, IDT involves our employees in cybersecurity.

IDT applies several formal measures to protect the confidentiality and integrity of our data and systems. Our Chief Information Security Officer oversees our information security infrastructure, and we have established regular performance and progress reports to share with the IDT Board of Directors. To keep data security awareness front-of-mind across IDT facilities, our cybersecurity team publishes monthly awareness articles on our employee intranet portal.

In 2015, we engaged an external auditing firm to assess our cybersecurity performance. We used the results of this audit to construct a cyber roadmap that identifies our information security objectives. In 2016, we began adopting a management approach based on ISO 27001 Information Security Management processes, aligning our cybersecurity strategy with industry best practices. We will complete this alignment in 2017, and moving forward will continually apply additional security frameworks.

BIOSECURITYG4-DMA

As the leading provider of custom oligos, IDT is responsible for ensuring that our products are used in an ethical manner. We take this responsibility seriously. In 2009, IDT became a founding member of the International Gene Synthesis Consortium (IGSC). The consortium is comprised of the world’s largest gene synthesis companies and academic organizations involved in synthetic biology. Together, we work to promote universal standards for the beneficial regulation of gene synthesis technology, including the use of the Harmonized Screening Protocol (HSP).

The HSP is the primary screening guideline created by the IGSC to prevent the misuse of synthetic genes. This robust standard is used by all members of the Consortium. In addition, the IGSC supports government efforts to prevent the misuse of our technology and works with government organizations to ensure regulations are up-to-date with the ever-changing landscape of synthetic biology and emerging disease.

INDUSTRY RISKSETHICS & GOVERNANCEG4-DMA, G4-56, G4-SO4

Our Business Code of Conduct of integrity and accountability provides a foundation for our company culture. All employees are expected to observe the letter and spirit of the Code. In addition to the Code of Conduct, IDT has established a compliance hotline available 24 hours a day, 7 days a week.

IDT operates in several countries, and we make certain that our employees understand and are aware of the ethical risks specific to conducting business internationally. We provide Foreign Corrupt Practices Act (FCPA) overview training to every IDT employee. In addition, all sales representatives working overseas receive a more robust and customized FCPA compliance training.

To help ensure that we avoid ethical violations within our supply chain, IDT distributes FCPA compliance questionnaires to our major distributors in high-risk countries. Our goal is to train 100 percent of our high-risk distributors on anti-bribery and FCPA regulations by the end of 2017. In addition, we will continue to provide FCPA training to 100 percent of our outside sales representatives in high-risk countries.

The IGSC provides a great forum for IDT to discuss key topics and challenges with our peers and other thought leaders in the industry.

The Coralville facility hosted a full-scale emergency response drill that included local responders from the police, fire, emergency medical technicians, and hazardous materials departments.

30

31

2014 2015 2016

Number of Days-Away Cases* 0 0 0

Number of Restricted-Time Cases* 0 5 2

Number of Other Cases (excluding First Aid)* 4 2 0

Total Number of Injury Cases * 4 7 2

TRIR** 0.68 0.98 0.25

DART*** 0 0.7 0.25

Number of Fatalities* 0 0 0

Hours Worked* 1,183,222 1,428,479 1,608,530

PEOPLE, PLANET, & COMMUNITIES

HEALTH & SAFETYG4-DMA

Each day, we focus on continuing to provide the safest possible working conditions for our employees. We constantly monitor our peers to see how IDT may improve upon our performance. IDT also benchmarks our approach to workplace safety against international standards and best practices so we may close potential safety gaps before an incident even occurs.

Our Environmental Health, and Safety (EHS) team defines our approach to delivering a safe work environment within all IDT facilities. Our EHS program complies with all OSHA regulations and requirements, and also supports our ISO 14001 compliance at our production facilities. IDT provides hands-on safety training to new hires during onboarding. The scope of training is determined by position.

Each IDT manufacturing facility has a dedicated EHS representative to carry out EHS policies and initiatives, including regular safety compliance training sessions. Our EHS committee hosts quarterly review meetings of IDT performance and compliance across all U.S. facilities. At our Coralville location, we track safety training activities through the same software systems used by our quality management group.

Despite a long history of safe performance, IDT continues to focus on ways to avoid safety incidents. We track recordable injury rates at our U.S. facilities, with plans to expand the use of this metric to all international locations by the end of 2018. Our annual U.S. safety goal is to remain below the most currently available recordable injury rate set forth by the U.S. Department of Labor.

*Includes Coralville, San Diego, and Skokie for 2014-2016. Redwood City data added in 2016

**TRIR = Total Recordable Incident Rate = total number of incidents regardless of whether or not those cases resulted in days away or restricted time per 100 full-time employee hours (200,000 work hours)

***DART = Days Away and Restricted Time Case Rate = Cases that resulted in lost time or reassignment of work per 100 full-time employees (200,000 work hours).

Emergency Response Drills in Coralville In May 2016, IDT Coralville hosted a full-scale emergency response drill with the Emergency Management Agency of Johnson County, Iowa. Our EHS team coordinated with local responders from police, fire, emergency medical technician, and hazardous materials departments to conduct live drills that simulated the response to safety incidents occurring—including hazardous materials spill, bomb threat, and fire.

IDT employees developed props and volunteered as victims during the four-hour exercise. This event served as a useful tool for measuring our and the community’s level of preparedness in the unlikely event of a serious safety incident.

“IDT has always been an excellent partner in preparedness,” said Dave Wilson, Emergency Management and Homeland Security Coordinator for Johnson County. “(They were) an eager and active partner in the planning, response, and review of the full-scale exercise that they hosted in 2016 for the Local Emergency Planning Committee.”

As a result of our planning and involvement in this emergency response drill, IDT received acknowledgement for Community Enrichment Activities from the Iowa Illinois Safety Council. We commend our Coralville EHS team for their contribution to our community’s safety efforts. We also thank all IDT employees for their continued dedication to ensuring IDT remains a safe and secure workplace.

FOOTPRINT REDUCTIONIDT leadership sets a clear tone in support of investing in sustainability. This extends to environmentally-favorable building design, equipment, processes, and practices. Our worldwide efforts to reduce our footprint demonstrate good stewardship of the planet’s resources and provide a means to unite employees around a global cause.

ISO 14001 & Global Performance Measures

At IDT, our Environmental Management System (EMS) follows the ISO 14001 standard for environmental management. Three of our manufacturing facilities are ISO 14001 certified: Coralville, San Diego, and Leuven. Under ISO standards, we adhere to rigorous methods to identify and measure our most significant environmental impacts and set targets to improve our performance over time. As of publication of this report, our Singapore site has achieved certification of ISO 9001, a precursor for achieving ISO 14001.

Our goal is to improve our efficiency and lower our environmental impact across all IDT facilities. As we expand in both size and scope, we are investigating ways to establish best practices in managing, measuring, and reducing our impacts on the environment. While individual facilities have been working on footprint reduction for several years, IDT is currently in the process of establishing consistent global measures and targets for our energy use, GHG emissions, water use, and waste generation. We will work first to implement this at our major production facilities and then expand to all IDT operations.Health & Safety

G4-LA6

As we expand in both size and scope, we are investigating ways to establish best practices in managing, measuring, and reducing our impacts on the environment.

Carly Hodges, director of B2B, and her daughter, Kaitlin, at the 2016 Tech

Chicks community event in Coralville.

32

33

Energy & GHG ReductionG4-DMA

Continued development of our product mix and the number of markets we serve requires new or upgraded buildings and equipment. IDT leadership stresses investment in energy-efficient equipment and systems, even if the return on investment timing is extended. We seek the most energy efficient options available whenever constructing new buildings or installing or upgrading production equipment. For example, in 2015 through 2016, we installed over 4,400 energy-efficient LED lights across two Coralville facilities, resulting in an energy savings of $38,400 per year. Our Coralville location is expanding to six facilities, and all new construction will be fitted with LED lighting.

At our San Diego operations, we now use four hybrid vehicles for our local delivery fleet. We use these vehicles to make same- and next-day customer deliveries within the greater San Diego area. IDT is tracking energy intensity based on units of production.

WaterG4-DMA

IDT places a strong focus on using water efficiently in our buildings and systems. While we do not use significant amounts of water, we still want to use water resources wisely to minimize our impact, particularly in water-stressed regions, such as our California locations.

In 2015 and 2016, IDT set a goal to reduce water intensity—liters of water used per bases manufactured—by 10 percent per year at our Coralville facilities. We have significantly outperformed these targets in Coralville, and now can assess water intensity across all production sites. We achieved these reductions through a continuous pursuit of small savings projects, such as installing water-saving equipment upgrades and fixtures where possible.

As we make plans to expand our facilities and open new locations, we will focus on incorporating water efficiency into the design and features of our new buildings.

In the next year, we will continue measuring the total water withdrawal and water intensity of our Coralville operations. Our 2017 goal in Coralville is to reduce our water intensity 18 percent from our 2016 baseline. In addition, we will complete full water audits for two of our production systems in Coralville. We will use the data gathered in these audits to identify and prioritize opportunities for future water use reductions.

Further, IDT continues to actively manage storm water runoff in Coralville to lessen the effects of flooding on the local community. We use permeable pavers to direct rain water to run through swales and prairie grasses, making its way to ponds before entering a local creek. This slows down the run off process and removes impurities along the way.

In 2015 and 2016, IDT reduced water intensity by 10 percent per year at our Coralville facilities.

0.045

0.040

0.035

0.030

0.025

0.0202014 2015 2016

0.041

0.038

0.027

Total Water Intensity (Liters/Base)

800,000,000

700,000,000

600,000,000

500,000,000

400,000,000

300,000,000

200,000,000

100,000,000

0

557,673,087615,600,245

2014 2015 2016

763,365,671

Total Bases Produced Bases = Units of Production

*Data from IDT’s four production facilities *Data from IDT’s four production facilities

Total Scope 1 & Scope 2 CO2e Emissions (kg)*G4-EN15, G4-EN16

Total Scope 1 Emissions GHG Co2e (kg)

2014 1,008,504

2015 922,351

2016 885,656

Total Scope 2 Emissions GHG Co2e (kg)

2014 6,026,573

2015 6,050,214

2016 6,268,556

Total Scope 1 & Scope 2 CO2e Emissions (kg)*

8,000,000

7,000,000

6,000,000

5,000,000

4,000,000

3,000,000

2,000,000

1,000,000

02014 2015 2016

7,035,077 6,972,565 7,154,212

Scope 1 Scope 2

0.11

0.10

0.09

0.08

0.07

0.06

0.05

0.042014 2015 2016

0.10

0.09

0.07

Total Energy Intensity (Megajoules/Base)*G4-EN5

Total Energy Use (Megajoules)*G4-EN3

56,000,000

55,500,000

55,000,000

54,500,000

54,000,000

53,500,000

53,000,000

52,500,000

52,000,000

51,500,000

55,818,612

54,638,395

2014 2015 2016

55,939,231

2014 2015 2016

24,500,000

24,000,000

23,500,000

23,000,000

22,500,000

22,000,000

21,500,000

21,000,000

20,500,000

20,000,000

19,500,000

23,175,264

23,847,708

21,089,342

Total Water Use (Liters)*G4-EN8

Permeable pavers in Coralville help direct rain water to run through bioswales and prairie grasses to help manage storm water run off.

34

35

WasteG4-DMA

With the creation of IDT products, we produce several operational waste streams, such as used solvent and disposable gloves. Our continual focus on minimizing chemical use and waste in our facilities helps deliver faster turnaround times and lower production costs, creating a win for IDT, a win for our customers, and a win for the environment.

We are working with contractors to determine an effective method for measuring total waste and recycling across our IDT-owned facilities. IDT is also in the process of working with landlords of our leased facilities to determine ways to measure and report our waste-to-landfill and recycling streams across the company. In addition, our managers are investigating the cost-effectiveness of developing a dedicated non-hazardous waste system for our leased facilities.

IDT carefully monitors our hazardous waste generation at each facility. We also set a target to reduce hazardous waste by 10 percent per base from 2016 levels by the end of 2018.

It remains our long-term goal to eliminate hazardous waste, such as chemical solvents, from our operations. IDT is making great strides toward achieving this target through several different management activities. For example, our Coralville facility partnered with another organization for the beneficial reuse of our chemical solvents. IDT is in the process of identifying alternative waste utilization technologies for used hazardous waste materials at all locations by the end of 2018.

Coralville Shipped Zero Hazardous Waste in 2016For the last decade IDT has actively sought out new and innovative ways to reduce the amount of hazardous waste we generate. Initial efforts involved evaluating less hazardous solvents for all synthesis reagent solutions and switching to less hazardous materials when possible. Further evaluations allowed us to remove all non-hazardous aqueous material from the bulk hazardous waste stream in our Coralville labs. We also evaluated processes that created smaller waste streams to determine if we could make modifications to eliminate the hazardous waste created from them.

In 2015, bulk hazardous waste was the last remaining hazardous waste stream regularly generated in our Coralville synthesis manufacturing processes. By late 2015, we identified a partner who could beneficially reuse our hazardous waste as a replacement for a commercially available product in their system. Since October 2015, more than 125,000 gallons of hazardous solvents have been beneficially reused. Coralville did not ship any hazardous waste from its facility in 2016.

PackagingG4-DMA

One of our most significant waste streams is packaging, necessary for the safe transport of our products to our customers. While IDT has taken steps to select sustainable packaging choices, we are increasing these efforts going forward. A majority of our products ship in simple, paperboard envelopes that are 100 percent biodegradable. We have also switched to using 100 percent biodegradable bubble wrap in our packaging.

In 2016, IDT hired a dedicated staff member responsible for identifying and pursuing footprint reductions associated with our packaging materials. Our 2020 goal is to introduce a 100 percent biodegradable or curbside recyclable packaging design to replace our traditional standard size expanded polystyrene (EPS) coolers. We also aim to increase the recycled content in our corrugate shipping materials from 65 percent to 85 percent by 2019.

Moving forward we will continue to address material impact challenges related to our product shipments and test alternative packaging solutions, such as ambient shipping. Ambient shipping reduces packaging and weight, which reduces emissions, decreases waste, and eases handling requirements.

A majority of our products ship in simple, paperboard envelopes that are 100 percent biodegradable. We have also switched to using 100 percent biodegradable bubble wrap in our packaging.

In addition, many of our products can be shipped at ambient temperatures with no loss in quality or performance. In 2017, we will continue to investigate ways in which we may increase our use of ambient shipments, which includes educating our customers about the benefits of transporting products in this manner.

Looking Ahead

While we are proud of the sustainable advancements IDT employees have made to date, we understand the importance of putting a system in place that measures and tracks our footprint metrics globally, and implements our best practices system-wide. This will be a focus of ours in 2017 and beyond.

Nitrile Glove Reuse & Recycling Nitrile gloves are among the most frequently used items in IDT laboratories. They are also one of the largest contributors of nonhazardous waste, as lab workers traditionally discard the gloves after each use. In March 2016, IDT implemented a new program at Coralville to divert the glove waste into separate collection bins. The used gloves are sent to a manufacturer where they are broken down and reused as inputs for plastic shelving, furniture, and other items. The new recycling program is an immediate success, with a total of 6,413 pounds of glove material collected and reused through the end of 2016. The program expanded to our San Diego operations in late 2016 and will be instituted in Leuven in 2017.

Hazardous materials storage at IDT’s production facility in San Diego.

Hazardous materials storage at IDT’s production facility in Coralville.

36

37

Our products cannot perform properly unless our raw materials are free of impurities. We place high demands for quality control on our supply chain, and we conduct regular supplier audits to ensure IDT continues to receive the highest possible quality materials for our products. We conduct quarterly reviews in each region to track several key metrics within the supply chain. Over time, IDT will align the activities of our U.S. purchasing groups with our European and Asian-Pacific operations to create a global performance metric for our entire supply chain.

Transportation

As part of our supply chain management approach, IDT engages directly with major transportation carriers, such as UPS and FedEx, to collaborate on ways to improve the reliability and efficiency of our shipments at reduced costs to our customers. Through these interactions, we are also able to focus on reducing the environmental impact associated with the packaging and shipping of our products. We discuss potential solutions related to sustainable packaging and evaluate the annual carbon impact of all IDT shipments. Our goal is to establish a baseline for our transport emissions by the end of 2017. Moving forward, we will document opportunities to reduce our emissions, such as locating closer to our customers, optimizing our modes of transport, and participating in carbon offset programs.

SUPPLY CHAIN MANAGEMENT & TRANSPORTATIONG4-DMA

Supply Chain

IDT strives to link production and the transportation of our products in the most efficient and economical manner possible. Our dedicated supply chain management staff is responsible for all procurement, raw materials planning, and data management surrounding the manufacture and shipment of IDT products to our customers. In addition, we focus on effectively managing our internal inventories and competitively sourcing key raw materials. Through our supply chain activities, we help ensure that IDT produces the highest quality products and delivers shipments to customers in a timely manner, at a competitive price.

Supplier Conduct & Evaluation

Activities within our supply chain affect our reputation as a responsible company. IDT developed a Supplier Code of Conduct in 2015 to provide clear expectations for each member of our supply chain regarding key issues including fair labor practices, workplace safety, environmental responsibility, and ethical conduct. We require each potential new supplier to review the Code prior to conducting business with IDT. We also require suppliers to complete and return self-assessments of their operations.

In 2016, we introduced environmental and social responsibility criteria to our supplier assessments. These criteria include, but are not limited to, the presence of corporate sustainability policies and programs, possession of an environmental management system such as ISO 14001 or EMAS certification, establishment of environmental targets and objectives, and procedures regarding the management and disposal of hazardous waste. IDT considers each supplier’s performance in these areas as part of our evaluation process. Our procurement team is in the process of creating a formal review process and procedures to address violations of the Supplier Code of Conduct. By 2018, we will achieve 100 percent acceptance of these new measures across our supply chain.

COMMUNITY INVESTMENTG4-DMA, G4-EC1, G4-EC8

Investing in the Scientific Community

Through our scientific expertise and strong financial performance, we are well positioned and committed to investing in and strengthening the scientific community. We invest in several different ways, from dedicating financial resources and products to lending our expertise. Here are a few examples of ways we contribute.

Volunteer Time Off

In 2015, we established our volunteer time off (VTO) program, Two Days to Make a Difference, to provide all IDT employees the opportunity to give back to the communities where they live and work. Every IDT employee, regardless of length of service, is entitled to two paid days of VTO each year to serve non-profit organizations that align with our corporate vision. At many IDT facilities, employee-led volunteering committees educate their colleagues about a variety of volunteering options to support scientific, educational and environmental groups.

To kick-start our first full year of the program, we developed a “VTO Challenge”, asking each facility to achieve at least 55 percent employee participation and then matched each hour of service with a cash donation to a volunteer organization through IDT’s

Foundation for Advancing Technology and Community Giving (ATCG). In 2016, IDT donated more than $23,000 through the VTO Challenge, and total volunteering across IDT reached nearly 2,800 hours.

Looking ahead, we will expand our VTO program to our facilities in Redwood City, Tokyo, Sydney, and Seoul, South Korea. Our VTO Challenge goal for 2017 is to achieve 50 percent participation across all facilities; this will include our many offsite employees.

As IDT expands, we remain committed to building relationships with and meeting the needs of our stakeholders—employees, customers, distributors, suppliers, investors, government agencies, communities, non-government organizations, and the media. We must ensure that we have clear policies and procedures in place to help us operate in an environmentally and socially responsible manner. This philosophy is the essence of our culture and is what drives our employees to be a part of creating a better world for future generations to thrive.

IDT Pledges up to $1M to iGEMThe iGEM Competition is the premiere student team competition in synthetic biology. For more than 10 years, iGEM has encouraged students at the high school through graduate school level to work together in solving real-world challenges by building genetically engineered biological systems. Teams design, build, and test their projects over the summer and present their work in competition at the annual Jamboree.

Teams must manage their own projects, advocate for their research, and secure their own funding. They are challenged to consider and address the safety, security, and environmental implications of their work.

For the past several years, IDT has participated informally through general donations to iGEM. In each of the last two years, IDT offered up to 20 kb of DNA to each participating team free-of-charge. With more than 250 teams from around the world taking advantage of this offer in 2016, we donated products valued at nearly $760,000.

iGEM encourages students to work together in solving real-world challenges by building genetically engineered biological systems.

In 2016, IDT donated more than $23,000 through the VTO Challenge, and total volunteering across IDT reached nearly 2,800 hours.

2016 iGEM Jamboree in Boston, MA

38

39

Volunteer Time Off by the NumbersG4-EC1, G4-EC8

30% INCREASE

83% INCREASE

54% INCREASE

2015 2016

135% INCREASE

Post Doc Award Program Fosters Research Opportunities Across the Globe Through its Foundation for Advancing Technology and Community Giving (ATCG), IDT grants one-year post-doctoral fellowships for students to study abroad. Once complete, students return to their home countries to share the knowledge learned. This grant program was begun in 2013 in partnership with the Technion-Israel Institute of Technology. In 2017, it will be expanded to include post-doctoral students from Belgium.

IDT continues to work with grant recipients throughout their terms of study. We follow their research and include them in presentations to company staff as appropriate. Past winners include:

2013 Johann Elbaz – Technion to MIT

2014 Limor Zwi Dantsis – Technion to Imperial College London

2015 Ariel Afek – Ben Gurion University to Duke

2016 Nir Drayman – Hebrew University to University of Chicago

Chicago, Illinois, cataloging specimens from the museum’s vast collection of insects. Data input into the museum’s archives is made available immediately for researchers’ use.

In addition, 65 percent of Singapore employees served at least four VTO hours in their first year participating in the program, donating their time in support of Keep Singapore Clean and the Singapore Science Center.

In September 2016, staff in Leuven completed a fundraising relay-run for cancer research (KanActief). At the end of the year, Leuven employees participated in de Warmste Week, a citywide celebration of giving, and raised 2,500 euros for Fight Against Cancer (Kom Op Tegen Kanker).

Over the year, more than 200 employees at our largest facility in Coralville, raised over $17,500 for 20 organizations.

VTO Challenge IDT employees around the world are embracing the VTO Challenge. In 2016, total employee volunteer participation increased by 54 percent over 2015, and IDT cash donations more than doubled in the program’s second year of existence.

Employees in San Diego posted the highest VTO participation, reaching 73 percent through their work with local organizations. These included I Love a Clean San Diego, GRID Alternatives, and the Fleet Science Center, among others. Corporate Headquarters in Skokie achieved a 70 percent participation rate through events such as Scientists-for-a-Day, in which employees spent a day at The Field Museum in

Skokie employees became Scien-tists for a Day at The Field Museum in Chicago. Data collected became available to researchers in real time.

Dr. Walder presents the 2016Post Doc Award to Nir Drayman.

From 2015 to 2016, total employee volunteer participation increased by 54 percent and IDT cash donations more than doubled.

40

41

IDT Initiates Award Program to Honor Sustainability ResearchIDT first introduced its Sustainability Award in 2015 to honor the achievement of its San Diego facility in attaining ISO 14001 certification. The award is directed to an external researcher whose work has the potential to make a global impact within a key area of sustainability. In 2015 and 2016, the area of sustainability chosen for the award was biodiversity.

Judges evaluate applications based on scientific importance, project feasibility, and the impact that IDT products can have on the success of the project. In 2015, the award was presented to Dr. Patricia Tavormina of the Division of Geological and Planetary Sciences at the California Institute of Technology. Dr. Tavormina’s research focuses on naturally occurring methane-oxidizing bacteria (MOB), and the role they can play in reducing global warming.

In 2016, the program expanded to include three winners and focused on researchers in the states of Iowa and Illinois. Those chosen to receive awards were:

• Dr. Matthew Niemiller, Associate Ecologist at the Illinois Natural History Survey, Prairie Research Institute, University of Illinois at Urbana-Champaign, and his team, for the environmental DNA detection and monitoring of rare groundwater fauna.

• Dr. Patrick Brown, Associate Professor, Department of Crop Sciences, at the University of Illinois, Urbana-Champaign, for his research in the effective use of gene bank biodiversity for crop improvement using DNA barcodes, next-generation sequencing, and genomic prediction.

• Dr. Shannon Hackett, Associate Curator at The Field Museum. Her research explores the relationship between immune system genetic variability, blood parasitism, and microbiomes in birds in changing environments.

IDT Oligos—Essential Tools to Find New SpeciesAlthough natural gas is clean and produces far less carbon dioxide (CO2) than other fossil fuels, it primarily consists of methane, a potent greenhouse gas that is 20 times stronger than CO2 at increasing the temperature of our planet. Burning natural gas is not an issue. The real problem is natural gas leaks. These can be small, seeping from aging pipes throughout our older cities. Or, they can be extremely large, billowing from production and storage facilities.

One example of this occurred in a storage facility in Los Angeles, California that leaked 97,100 metric tons of methane from October 2015 to February 2016. This leak has the same effect on the atmosphere as burning 917 million gallons of gas and is the largest leak of methane in the history of the U.S.

Dr. Patricia Tavormina is a modern-day explorer hunting for new species of life, particularly one’s that can degrade methane. But unlike a traditional explorer, Dr. Tavormina is not searching for something that can be seen. Methane eating lifeforms are invisible to the naked eye.

IDT products make this possible. IDT’s custom-made oligos are carefully designed to recognize the unique genetic code from genes essential for degrading methane. Although she doesn’t isolate the living organism, these genes tell us so much about the lifeform. The code for the particular gene can identify what species and type of lifeform was in the sample, and if the code has never been seen before, it means a new species of life exists in that location. Dr. Tavormina and her colleagues have successfully done just that task—they have identified new species of bacteria that can degrade methane, a new species that can potentially be used to mitigate methane leaks before they cause global warming.

2016 Sustainability Award presentation celebration at The Field Museum in Chicago

Dr. Tavormina presents her research as the winner of the 2015 Sustainability Award at IDT’s facility in San Diego.

42

43

GLOSSARY

DEFINITIONS OF KEY SCIENTIFIC TERMS

Antisense Technology

In molecular biology, the use of complementary single-stranded DNAs to inhibit specific genes from making proteins. The complementary DNAs, or antisense DNA, can be used as “drugs” to disrupt the cellular pathways that lead to cancers, diabetes, muscular dystrophy, asthma, arthritis, and other diseases.

Assay

A specific test or analysis to determine characteristics of an experimental sample such as identity, quantity, or function.

Base

A biological molecule that is an important component of nucleic acids such as DNA and RNA, and includes cytosine, guanine, adenine, thymine, and uracil, abbreviated as C, G, A, T, and U, respectively.

Base Pair

Two bases connected via an attractive force called a hydrogen bond, which holds two complementary DNA strands together to form double-stranded DNA. The bases pair so that cytosine is connected to guanine and thymine is connected to adenine.

Beta-testing

A phase of testing that involves allowing the actual end-user of a product to evaluate the ease-of-use and effectiveness of a product before releasing it to the entire customer base.

Biochemistry

The study of the living organisms that focuses on vital chemical process such as growth and reproduction, energy production, and nutrient assimilation.

Biodiversity

The variety of different creatures in a particular area, including plants, animals, insects, and microorganisms.

Biotechnology

The use and adaptation of various biological processes found in organisms for the large-scale production of useful biological products such as pharmaceuticals, enzymes, biofuels, pest-resistant crops, etc.

Cell

Cells are the basic structural and functional biological units of all known living organisms.

CRISPR

Acronym for Clustered Regularly Interspaced Short Palindromic Repeats; refers to the short repeated genomic DNA found in bacterial genomes that are created by genome editing enzymes. Researchers have adapted these bacterial immune system nuclease enzymes so they can edit and change the genetic material in cells from other organisms.

Diagnostic Assay

A specific test or analysis used to determine whether or not a person has an illness or disease.

DNA

Deoxyribonucleic acid (DNA) is commonly referred to as the instruction manual or “blueprint” for life. It consists of four nucleotide subunits comprising the bases adenine, cytosine, guanine, and thymine, commonly abbreviated as A, C, G, and T, respectively. Typical DNA is found as a helix or corkscrew of two strands held together through complementary base pairs where A always pairs with T and C always pairs with G.

DNA Synthesis

Natural or artificial creation of DNA by sequentially adding one base at a time in a specific order.

Editing Tools

Refers to enzymes and nucleic acids that are used to edit or modify the genetic code of a cell.

Enzyme

A large molecule (usually a protein or RNA) that acts as a catalyst to cause or accelerate a chemical reaction.

Functional Genomics

Experimental procedures that determine the biological function of a gene in an organism.

Gene

A segment of DNA that contains the coding information used to make a functioning component (RNA/protein) of an organism.

Gene Expression

The creation of functional proteins, or RNA, from the genetic code (DNA) that is used for the cell to function in the organism.

Gene Fragment

A segment of DNA that contains the coding information for a small part of a gene.

Genome

The total genetic material of an organism usually comprised of DNA, although some viruses have RNA genomes. A genome includes both genes and DNA sequences of unknown function and is the hereditary information that is passed from one generation of an organism to the next.

Genome Editing

Using various genomic tools to change or modify the genetic code of a cell.

Genomics

The study of genomes, including understanding their structure, function, evolution, and mapping their features.

Genomics Assay

Experimental test or analysis used to determine various features associated with genomes, such as the nucleotide sequence.

Genomic DNA

DNA isolated from an organism that contains the entire genetic code for the organism.

Genomics Solutions

A suite of assays and products that are used to study genome structure, alter genome content, and/or study genome functions.

Genotype

The genetic make-up of an individual organism, which includes the order of bases throughout its genome.

44

45

Genotyping

Experimental procedure to determine the genetic constitution of a person; can determine if a person has a genetic change that is associated with a particular genetic predisposition or a disease.

Good Manufacturing Practices (GMP)

A system of manufacturing that ensures product production is consistent and of strict quality established by the national government agencies that regulate food, drug, and medical devices.

Human Genome Project

An international research effort started in 1988 that determined the entire sequence of the 3.2 billion bases of DNA found in the human genome. The project was completed in 2003, and spurred a revolution in understanding our genes and how they are used to create life.

Immunology

The study of biological molecules that make up our immune system, understanding how they function and interact to protect our health.

Master Mix

A blend of enzymes, DNA building blocks, and buffers that is ready to be used for amplifying a piece of DNA with qPCR.

Molecule

A general term used to describe a fundamental component of a biological system. Individual DNA, RNA, and proteins can all be considered molecules.

Molecular Biology

The study of molecules essential to cell function and therefore, all life; involves understanding their structure, functions, and interactions within cells.

Mutation Detection

A term used to describe the process of identifying a genetic mistake.

Next Generation Sequencing

Advanced technology used to decode the order of bases or sequence of an entire genome in one reaction; also called NextGen Sequencing or NGS.

Nucleic Acid

General term for RNA and DNA.

Nucleic Acid Synthesis

Natural or artificial creation of DNA and/or RNA by sequentially adding one base at a time in a specific order.

Nucleotides

Biological compounds made up of a sugar, phosphate, and base that form the basic units of RNA and DNA. Bases include cytosine, guanine, adenine, thymine, and uracil, abbreviated as C, G, A, T, and U, respectively.

Oligonucleotide (“Oligo”)

A short piece of single-stranded DNA or RNA often shortened to “oligo.”

Original Equipment Manufacturing (OEM) Integrations

Creating our products to be resold in another company’s product

Organism

An individual life form composed of one or more cells.

Phosphate Group

A group of atoms found in the backbone of a DNA strand.

Primer

A short piece of single-stranded DNA designed to bind to a specific nucleotide sequence of DNA that serves as a starting point for DNA synthesis. Oligonucleotides are used as primers.

Probe

A short piece of single-stranded DNA designed to bind to the genetic material of an organism and be detected by the researcher.

Protein

Important component of organisms made from chains of amino acids, the order of which is encoded in the genome. Proteins are involved in virtually every biological process. They function as enzymes in biochemical reactions, but also as structural and mechanical components of the cell.

qPCR (quantitative Polymerase Chain Reaction)

Technology that uses primers and a probe labeled with a fluorescent dye to amplify a piece of DNA from a few copies to millions of copies while recording the amount of copies being made in real-time, which then can be used to deduce the amount of starting DNA. Used primarily to determine how much a gene is being expressed into RNA and protein.

Reagents

A mixture of substances for use in laboratory experiments to create a reaction or molecular process.

RNA

An important component of a cell that consists of nucleotides with different bases (G, A, U, and C) strung together in a single strand.

RNA Interference

An artificial or natural biological process that uses oligos to interfere with cellular gene expression.

Sequencing

A technology that determines the precise order of nucleotides within a segment of DNA.

Synthesis

Combining two or more entities to form something new, such as linking nucleotides to form a DNA or RNA sequence.

Synthetic Biology

An interdisciplinary branch of biology and engineering that enhances or improves the genetics of an organism to create a new function useful for industrial applications, such as yeast that create biofuels, microbes that clean toxic spills, or plants that are more drought resistant.

Vertical Integration Processes

The manufacturing of products that includes all aspects of production--raw materials, proprietary equipment, transportation, marketing, and retailing.

46

47

CONTENT INDEX General Standard Disclosures (continued)

General Standard Disclosures Location/Direct Answer

Governance

G4-34 Governance of Sustainability

Ethics & Integrity

G4-56 Governance of Sustainability; Ethics & Governance

The General Standard Disclosures were not externally assured.

General Standard Disclosures

General Standard Disclosures Location/Direct Answer

Strategy & Analysis

G4-1 Letter to Stakeholders

Organizational Profile

G4-3 Integrated DNA Technologies

G4-4 Who We Are

G4-5 Our Solutions, Services, & Markets Served

G4-6 Our Team

G4-7 IDT is a privately owned company

G4-8 Our Solutions, Services, & Markets Served

G4-9 Our Team; Our Expansion

G4-10 Our Team

G4-11 Our Team

G4-12 IDT Value Chain

G4-13 Our Solutions, Services, & Markets Served

G4-14 We do not incorporate the precautionary principle at this time.

G4-15 We do not currently subscribe to any external charters.

G4-16 International Gene Synthesis Consortium

Identified Material Aspects & Boundaries

G4-17 Our Team

G4-18 Stakeholder Engagement & Materiality

G4-19 Stakeholder Engagement & Materiality

G4-20 Stakeholder Engagement & Materiality

G4-21 Stakeholder Engagement & Materiality

G4-22 Governance of Sustainability

G4-23 Stakeholder Engagement & Materiality

Stakeholder Engagement

G4-24 Stakeholder Engagement & Materiality

G4-25 Stakeholder Engagement & Materiality

G4-26 Stakeholder Engagement & Materiality

G4-27 Stakeholder Engagement & Materiality

Report Profile

G4-28 About Our Report

G4-29 2015

G4-30 Biennial

G4-31 sustainability@idtdna.com

G4-32 GRI ‘Core’ in accordance option

G4-33 This report has not been externally assured.

The General Standard Disclosures were not externally assured.

Specific Standard Disclosures The Specific Standard Disclosures were not externally assured.

DMA & Indicators Location/Direct Answer Omissions

Category: Economic

Material Aspect: Economic Performance

G4-DMA Community Investment

G4-EC1 Community Investment

Material Aspect: Indirect Economic Impacts

G4-DMA Community Investment

G4-EC8 Community Investment

Category: Environmental

Material Aspect: Energy

G4-DMA Energy & GHG Reduction

G4-EN3 Energy & GHG Reduction

CO2e Emissions by Fuel Type, 2014–2016 (in kilograms)

2014 2015 2016

Natural Gas 969,164 869,227 835,247

Fuel Oil/Diesel Fuel

39,209 52,905 50,190

LPG 131 219 219

Total 1,008,504 922,351 885,656

The total energy consumption for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

G4-EN5 Energy & GHG Reduction; “Base” is a unit of production; the intensity ratio is based on EN3

The total energy consumption for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

Material Aspect: Water

G4-DMA Water

G4-EN8 Water The total volume of water withdrawn for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

48

49

DMA & Indicators Location/Direct Answer Omissions

Material Aspect: Emissions

G4-DMA Energy & GHG Reduction

G4-EN15 Energy & GHG Reduction The total direct GHG emissions (Scope 1) for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

G4-EN16 Energy & GHG Reduction The total indirect GHG emissions (Scope 2) for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

Material Aspect: Effluents & Waste

G4-DMA Waste; Packaging

G4-EN23 The total weight of waste by type and disposal method is currently unavailable. In 2017, we are working with contractors to determine an effective method for measuring total waste and recycling across our IDT-owned facilities. IDT is also in the process of working with landlords of our leased facilities to determine ways to measure and report our waste-to-landfill and recycling streams. In addition, our managers are investigating the cost effectiveness of developing a dedicated nonhazardous waste system for our leased facilities.

Material Aspect: Supplier Environmental Assessment

G4-DMA Supply Chain Management & Transportation

G4-EN32 As of 2016, 100% of all new vendors were screened using environmental criteria.

Category: Social

Sub-Category: Labor Practices & Decent Work

Material Aspect: Employment

G4-DMA Employee Development, Engagement, & Retention

G4-LA1 Employee Development, Engagement, & Retention

DMA & Indicators Location/Direct Answer Omissions

Material Aspect: Occupational Health & Safety

G4-DMA Health & Safety

G4-LA6 Health & Safety The total injury rates for all facilities is currently unavailable. This topic is most material in our production facilities, for which we provide data. In 2017, we are working to expand our measurement to include all facilities.

Material Aspect: Training & Education

G4-DMA Talent Attraction & Recruiting; Employee Development, Engagement, & Retention

G4-LA10 Talent Attraction & Recruiting; Employee Development, Engagement, & Retention

Material Aspect: Supplier Assessment for Labor Practices

G4-DMA Supply Chain Management & Transportation

G4-LA14 As of 2016, 100% of all new vendors were screened using labor practices criteria.

Sub-Category: Human Rights

Material Aspect: Supplier Human Rights Assessment

G4-DMA Supply Chain Management & Transportation

G4-HR10 As of 2016, 100% of all new vendors were screened using human rights criteria.

Sub-Category: Society

Material Aspect: Anti-Corruption

G4-DMA Ethics & Governance

G4-SO4 Ethics & Governance

Sub-Category: Product Responsibility

Material Aspect: Customer Health & Safety

G4-DMA Biosecurity

G4-PR2 IDT experienced zero (0) incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of its products and services.

Material Aspect: Product & Service Labeling

G4-DMA Customer Experience

G4-PR5 Customer Experience

Material Aspect: Customer Privacy

G4-DMA Cybersecurity

G4-PR8 In 2015 and 2016, there were zero (0) substantiated complaints regarding breaches of customer privacy and losses of customer data.

Specific Standard Disclosures (continued) The Specific Standard Disclosures were not externally assured. Specific Standard Disclosures (continued) The Specific Standard Disclosures were not externally assured.

50

51

We welcome feedback, both on this report and on our sustainability priorities. Submit comments, questions, and feedback to sustainability@idtdna.com.

8180 McCormick Blvd., Skokie, IL 60076 USA © 2017 Integrated DNA Technologies. All Rights Reserved.