2022 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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Metric

UOM Code

Natural Grocers Response

FLEET FUEL MANAGEMENT Fleet fuel consumed, percentage renewable

Gigajoules (GJ), Percentage (%)

FB-FR 110a.1

Primarily third party deliveries. Natural Grocers trucking fleet (3 vehicles) serves partial deliveries to 35 stores. NG fleet 1,588 GJ, 0% renewable energy.

AIR EMISSIONS FROM REFRIGERATION Gross global Scope 1 emissions from refrigerants

Metric tons CO2-e FB-FR 110b.1

We endeavor to disclose this information in the future

Percentage of refrigerants consumed with zero ozone-depleting potential

Percentage (%) by weight Percentage (%)

FB-FR 110b.2 FB-FR 110b.3

We endeavor to disclose this information in the future

Average refrigerant emissions rate

We endeavor to disclose this information in the future

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

Gigajoules (GJ), Percentage (%)

FB-FR 130a.1

(1) 393,459 (2) 100% (3) 0%

FOOD WASTE MANAGEMENT Amount of food waste generated, percentage diverted from the waste stream Metric tons (t), Percentage (%)

FB-FR 150a.1

We endeavor to disclose this information in the future. We do not offer self-service bulk bins, deli counter, meat counter, seafood counter, or salad bar to significantly reduce food waste. See also the Waste and Recycling section

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

Number, Percentage (%)

FB-FR 230a.1

None

n/a

FB-FR 230a.2

See the Governance / Data and Cybersecurity section

FOOD SAFETY High-risk food safety violation rate

Rate

FB-FR 250a.1 FB-FR 250a.2

We endeavor to disclose this information in the future

(1) Number of recalls (2) number of units recalled (3) percentage of units recalled that are private-label products PRODUCT HEALTH & NUTRITION Revenue from products labeled and/or marketed to promote health and nutrition attributes

Number, Percentage (%)

(1) Class I: 4 total events (2) 7 SKUs (3) 0% of events involved private-label products

U.S. Dollars ($)

FB-FR 260a.1

In FY22 grocery products represented $759 million or 70% of Net Sales, and supplements represented $227 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 $103 million or 9% 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 Standards & Marketing section

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Metric

UOM Code

Natural Grocers Response

PRODUCT LABELING & MARKETING Discussion of the process to identify and manage products and ingredients related to nutritional and health concerns among consumers Number of incidents of non-compliance with industry or regulatory labeling and/or marketing codes

n/a

FB-FR 260a.2 FB-FR 270a.1 FB-FR 270a.2 FB-FR 270a.3

See the Standards & Marketing and Product Standards sections

Number

One: We had a temporary limited withdrawal of one UPC for a printing error that understated the Total Carbohydrate amount. This was corrected with a withdrawal from our distributor’s warehouses, relabeled with the correct information and returned to circulation.

Total amount of monetary losses as a result of legal proceedings associated with marketing and/or labeling practices

U.S. Dollars ($)

We do not report this publicly

Revenue from products labeled as (1) containing genetically modified organisms (GMOs) and (2) non-GMO

U.S. Dollars ($)

(1) We do not track this (2) $735 million or 67% of Net Sales were labeled non-GMO See also the Product Standards: Our GMO Policy section

FAIR LABOR PRACTICES (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

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

FB-FR 310a.1 (1) In FY22 the average hourly wage was $17.46; Crew also received $1.00 per hour worked in store credit (for full time Crew this equates to $2,080 per year) (2) 0%

Percentage (%)

FB-FR 310a.2 FB-FR 310a.3 FB-FR 310a.4

0%

(1) Number of work stoppages and (2) total days idle

Number, Days

None

Total amount of monetary losses as a result of legal proceedings associated with: (1) labor law violations and (2) employment discrimination

U.S. Dollars ($)

We do not report this publicly

MANAGEMENT OF ENVIRONMENTAL & SOCIAL IMPACTS IN THE SUPPLY CHAIN Revenue from products third-party certified to environmental or social sustainability sourcing standard U.S. Dollars ($)

FB-FR 430a.1 $645 million or 59% of Net Sales were identifiable as third party certified according to environmental or social sustainability sourcing standards. Additional product sales met these standards but were not identifiable as certified. See also the Standards & Marketing and Product Standards sections

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

Percentage (%) by revenue

FB-FR 430a.2 FB-FR 430a.3 FB-FR 430a.4

1) 100% 2) 100%

n/a

See the Standards & Marketing and Product Standards sections

Discussion of strategies to reduce the environmental impact of packaging

n/a

See the Environmental Sustainability section

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