2021 Natural Grocers Environmental, Social, and Governance Report

Natural Grocers has a legacy of being a values-driven company. Our commitment to building a healthy, sustainable future for our customers, good4u Crew members, and communities is authentic. Our Crew works hard to ensure our stores, operations, and supply chain reflect these values.

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SASB I tem

Metric

UOM

Code

Natural Grocers Response

Fleet Fuel Management

Fleet fuel consumed, percentage renewable

Gigajoules (GJ), Percentage (%)

FB-FR-110a.1 NG fleet (2 vehicles) 1,576 GJ, 0% renewable energy. NG fleet serves partial deliveries to 33 stores in the region. Third party deliveries to stores otherwise.

Air Emissions from Refrigeration Gross global Scope 1 emissions from refrigerants Air Emissions from Refrigeration Percentage of refrigerants consumed with zero ozone depleting potential

Metric tons CO2-e FB-FR-110b.1 We endeavor to disclose this information in the future

Percentage (%) by weight Percentage (%) Gigajoules (GJ), Percentage (%)

FB-FR-110b.2 We endeavor to disclose this information in the future

Air Emissions from Refrigeration Average refrigerant emissions rate

FB-FR-110b.3 We endeavor to disclose this information in the future FB-FR-130a.1 (1) We endeavor to disclose this information in the future (2) 100% (3) 0% FB-FR-150a.1 We endeavor to disclose this information in the future.

Energy Management

(1) Operational energy consumed (2) percentage grid electricity (3) percentage renewable

Food Waste Management

Amount of food waste generated, percentage diverted from the waste stream

Metric tons (t), Percentage (%)

Our product selection intentionally excludes self-service bulk bins, a deli counter, a meat counter, a seafood counter, and salad bar to avoid unnecessary food waste.

Data Security

(1) Number of data breaches (2) percentage involving personally identifiable information(PII) (3) number of customers affected Description of approach to identifying and addressing data security risks (1) Number of recalls (2) number of units recalled (3) percentage of units recalled that are private-label products Revenue from products labeled and/or marketed to promote health and nutrition attributes High-risk food safety violation rate

Number, Percentage (%)

FB-FR-230a.1 None

Data Security

n/a

FB-FR-230a.2 See the Governance / Data and Cybersecurity section

Food Safety Food Safety

Rate

FB-FR-250a.1 We endeavor to disclose this information in the future

Number, Percentage (%)

FB-FR-250a.2 (1) 9 total Class I recalls (2) 17 SKUs (3) 0% from Private Label

Product Health & Nutrition

U.S. Dollars ($)

FB-FR-260a.1 In FY21 grocery products represented $732 million or 69% of Net Sales, and

supplements represented $220 million or 21% of Net Sales. All food and supplements products meet the 260a.1 requirements: the products sold by Natural Grocers must meet high quality standards that are not known to contain artificial colors, flavors, preservatives or sweeteners, or partially hydrogenated or hydrogenated oils. The remaining $104 million or 10% of Net Sales relate to body care, pet and other products, most of which also have labeling and/or marketing to promote health and nutrition attributes. See also the Sustainability/ Product Standards section

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SASB I tem

Metric

UOM

Code

Natural Grocers Response

Product Health & Nutrition

Discussion of the process to identify and manage products and ingredients related to nutritional and health concerns among consumers n/a

FB-FR-260a.2 See the Sustainability/ Product Standards section

Product Labeling & Marketing Number of incidents of non-compliance with industry or regulatory labeling and/or marketing codes Product Labeling & Marketing Total amount of monetary losses as a result of legal proceedings associated with marketing and/or labeling practices

Number

FB-FR-270a.1 None

U.S. Dollars ($)

FB-FR-270a.2 We do not report this publicly.

Product Labeling & Marketing Revenue from products labeled as

U.S. Dollars ($)

FB-FR-270a.3 (1) We do not track this

(1) containing genetically modified organisms (GMOs) and (2) non-GMO (1) Average hourly wage and (2) percentage of in-store and distribution center employees earning minimum wage, by region Percentage of active workforce covered under collective bargaining agreements (1) Number of work stoppages and (2) total days idle Total amount of monetary losses as a result of legal proceedings associated with: (1) labor law violations and (2) employment discrimination Revenue from products third-party certified to environmental or social sustainability sourcing standard Percentage of revenue from (1) eggs that originated from a cage-free environment and (2) pork produced without the use of gestation crates Discussion of strategy to manage environmental and social risks within the supply chain, including animal welfare Discussion of strategies to reduce the environmental impact of packaging n/a n/a

(2) $683 million or 65% of Net Sales were labeled non-GMO See also the Sustainability/ Product Standards: Our GMO Policy section

Fair Labor Practices

U.S. Dollars ($), Percentage (%)

FB-FR-310a.1 (1) In FY21 the average hourly wage was $16.00; Crew also received $1.00 per hour worked in store credit (for full time Crew this equates to $2,080 per year) (2) 0%

Fair Labor Practices

Percentage (%)

FB-FR-310a.2 0%

Fair Labor Practices Fair Labor Practices

Number, Days U.S. Dollars ($)

FB-FR-310a.3 None

FB-FR-310a.4 We do not report this publicly.

Management of Environmental & Social Impacts in the Supply Chain

U.S. Dollars ($)

FB-FR-430a.1 $593 million or 56% of Net Sales were third party certified according to environmental or social sustainability sourcing standards. Additional product sales met these standards but were not certified. See also the Sustainability/ Product Standards section

Management of Environmental & Social Impacts in the Supply Chain

Percentage (%) by revenue

FB-FR-430a.2 1) 100% 2) 100%

Management of Environmental & Social Impacts in the Supply Chain Management of Environmental & Social Impacts in the Supply Chain

FB-FR-430a.3 See the Sustainability/ Product Standards section

FB-FR-430a.4 See the Sustainability/ Packaging & Waste section

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